LHC Group announces fourth quarter and full year 2021 financial results

Issues full year and first quarter 2022 guidance

LAFAYETTE, La., Feb.23, 2022 /PRNewswire/ -- LHC Group, Inc. (NASDAQ: LHCG) announced its financial results for the quarter and year ended December 31, 2021. 

Fourth Quarter 2021 Financial Results

  • Net service revenue increased 9.6% to $583.4 million.
  • Net income attributable to LHC Group's common stockholders was $15.7 million, or $0.50 per diluted share.
  • Adjusted net income attributable to LHC Group's common stockholders was $39.4 million, or $1.26 adjusted earnings per diluted share.
  • Adjusted EBITDA was $61.6 million.

Full Year 2021 Financial Results

  • Net service revenue increased 7.6% to $2.220 billion.
  • Net income attributable to LHC Group's common stockholders was $115.7 million, or $3.69 per diluted share.
  • Adjusted net income attributable to LHC Group's common stockholders was $179.5 million, or $5.73 per diluted share.
  • Adjusted EBITDA was $265.5 million.

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

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.
  • Average Home Health quality star ratings of 4.37 during the period of April 2021 through December 2021 according to Strategic Healthcare Partners, up from 4.10 for the period of July 2020 through March 2021 per the most recent CMS data.
  • Organic growth in total home health admissions increased 3.8% in the fourth quarter of 2021 compared with the same period in 2020 and increased by 5.5% in 2021 over 2020.
  • Organic growth in non-Medicare episodic home health admissions increased by 18.1% in the fourth quarter of 2021 compared with the same period in 2020 and increased by 21.9% in 2021 over 2020.
  • Non-Medicare rates increased 4% in 2021 over 2020 and increased 17% over the last 5 years.
  • Organic growth in hospice admissions decreased 6.2% in the fourth quarter of 2021 compared with the same period in 2020 and increased by 0.5% in 2021 over 2020. Organic growth in hospice admissions are pacing to 8% to 10% for the first quarter of 2022 compared to the first quarter of 2021and 18% to 20% sequentially over the fourth quarter of 2021.
  • Home Health average daily census of 86,228 in the fourth quarter of 2021 was 3.0% higher than 83,686 in the fourth quarter of 2020. For the year, Home Health average daily census of 84,734 was 5.8% higher in 2021 than 2020.
  • Hospice average daily census of 7,024 in the fourth quarter of 2021 was 62.6% higher than 4,320 in the fourth quarter of 2020. For the year, Hospice average daily census of 5,405 was 24.4% higher in 2021 than 2020. The year-over-year growth was due to a net increase of 40 hospice locations added during 2021.
  • The percentage of Home Health clinicians on quarantine due to COVID-19 went from a high of 6.5% in January 2022 down to 0.6% today which is the lowest quarantine level since July 2021.
  • On November 2, 2021, LHC Group finalized the acquisition of selected home health, hospice, and therapy assets from HCA Healthcare and Brookdale Health Care Services venture that marks the entry into two new markets – Minnesota and New Mexico - and expands service areas in 20 states where the company already operates. The acquisition includes 47 total locations and LHC Group expects incremental annualized revenue from this acquisition of approximately $130 million.
  • On December 6, 2021, LHC Group's Board of Directors approved a share repurchase program authorizing the Company to repurchase up to $250 million of its common stock. During the fourth quarter, the Company repurchased 634,869 shares of common stock for approximately $83.7 million.

Commenting on the results, Keith G. Myers, LHC Group's Chairman and Chief Executive Officer, said, "For perhaps the first time in our industry's existence, we believe there is a general consensus throughout the country for emphasizing the advantages of at-home care. The demand for at-home healthcare is as strong as ever with patients and families overwhelmingly preferring care in the home and senior advocates, Congress and policymakers increasingly recognizing the better outcomes and efficiency. As the proven partner to 435 leading hospitals and health systems, an extensive national footprint and very particular assets that can lead the transition to value-based care, we are embracing our mission, values and culture to lead this industry once again in 2022 and beyond."

Full Year 2022 and First Quarter 2022 Guidance

Full year 2022 net service revenue is expected to be in a range of $2.500 billion to $2.550 billion, adjusted earnings per diluted share is expected to be in a range of $5.60 to $6.00, and adjusted EBITDA, less non-controlling interest, is expected to be in a range of $270 million to $290 million.

For the first quarter ending March 31, 2022, net service revenue is expected to be $560 million to $580 million, adjusted earnings per diluted share is expected to be in a range of $1.00 to $1.10, and adjusted EBITDA, less non-controlling interest, is expected to be in a range of $50 million to $55 million.

Joshua L. Proffitt, LHC Group's President and Chief Operating Officer, added, "We have established a strong foundation for growth in 2022 with our leading quality and patient satisfaction scores, momentum in physician referrals, and underlying strength in our organic growth and M&A activity. While late fourth quarter and early first quarter operating trends were affected by reduced capacity to service the strong demand for our services due to COVID variants and labor availability, we expect to benefit in 2022 from recent stabilization in those trends and from our implementation of certain cost improvement initiatives and efficiencies. Additionally, we believe our continued focus on maintaining a disciplined approach to operations and capital allocation will accelerate our growth as the year progresses."

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 take into account the impact of future COVID-19 related costs and expenses. 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 Thursday, February 24, 2022, at 9:00 a.m. Eastern time to discuss its fourth 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, March 3, 2022, by dialing (844) 512-2921 (international callers: (412) 317-6671) and entering confirmation number 13726712.

The Company has posted supplemental financial information on the fourth 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 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 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)

As of December 31,

2021

2020

ASSETS

Current assets:

Cash

$                     9,809

$                 286,569

Receivables:

Patient accounts receivable

348,820

301,209

Other receivables

13,780

11,522

Total receivables

362,600

312,731

Prepaid income taxes

7,531

Prepaid expenses

28,401

22,058

Other current assets

24,801

25,664

Total current assets

433,142

647,022

Property, building and equipment, net of accumulated depreciation of $98,394 and $82,721, respectively

153,959

138,366

Goodwill

1,748,426

1,259,147

Intangible assets, net of accumulated amortization of $19,152 and $17,659, respectively

400,002

315,355

Assets held for sale

—                         —

1,900

Operating lease right of use asset

113,399

100,046

Other assets

46,693

21,518

Total assets

$             2,895,621

$             2,483,354

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable and other accrued liabilities

$                   98,118

$                   64,864

Salaries, wages and benefits payable

100,532

88,666

Self insurance reserves

33,784

35,103

Government stimulus advance

—                         —

93,257

Contract liabilities - deferred revenue

106,489

317,962

Current operating lease payable

37,630

32,676

Amounts due to governmental entities

5,447

1,516

Income taxes payable

—                         —

21,464

Current liabilities - deferred employer payroll tax

26,790

25,928

Total current liabilities

408,790

681,436

Deferred income taxes

70,026

47,237

Income taxes payable

7,320

6,203

Revolving credit facility

661,197

20,000

Other long term liabilities

—                         —

25,928

Operating lease payable

78,688

70,275

Total liabilities

1,226,021

851,079

Noncontrolling interest-redeemable

17,501

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; 36,549,524  and 36,355,497 shares issued, and 30,634,414 and 31,139,840 shares outstanding, respectively

365

364

Treasury stock – 5,915,110  and 5,215,657 shares at cost, respectively

(164,790)

(69,011)

Additional paid-in capital

979,642

962,120

Retained earnings

751,025

635,297

Total LHC Group, Inc. stockholders' equity

1,566,242

1,528,770

Noncontrolling interest – non-redeemable

85,857

84,584

Total stockholders' equity

1,652,099

1,613,354

Total liabilities and stockholders' equity

$             2,895,621

$             2,483,354

 

 

LHC GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)

Three Months Ended
December 31,

(unaudited)

Year Ended 
 December 31,

2021

2020

2021

2020

Net service revenue

$

583,429

$

532,329

$

2,219,622

$

2,063,204

Cost of service revenue (excluding depreciation and amortization)

364,603

317,243

1,336,609

1,250,403

Gross margin

218,826

215,086

883,013

812,801

General and administrative expenses

189,681

162,944

696,435

632,847

Impairment of intangibles and other

-

1,227

937

1,849

Operating income

29,145

50,915

185,641

178,105

Interest expense

(2,797)

(89)

(4,338)

(4,129)

Income before income taxes and noncontrolling interest

26,348

50,826

181,303

173,976

Income tax expense

4,778

12,862

37,687

36,043

Net income

21,570

37,964

143,616

137,933

Less net income (loss) attributable to noncontrolling interests

5,878

7,584

27,888

26,337

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

$

15,692

$

30,380

$

115,728

$

111,596

Earnings per share:

Basic

$

0.50

$

0.98

$

3.71

$

3.59

Diluted

$

0.50

$

0.97

$

3.69

$

3.56

Weighted average shares outstanding:

Basic

31,167

31,128

31,195

31,092

Diluted

31,317

31,443

31,397

31,366

 

 

LHC GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)

For the year ended December 31,

2021

2020

Operating activities:

Net income

$             143,616

$             137,933

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

Depreciation and amortization expense

20,917

21,249

      Amortization and impairment of operating lease right of use asset

37,506

34,546

Stock-based compensation expense

15,868

14,347

Deferred income taxes

22,789

(13,261)

(Gain) Loss on disposal of assets

(1,134)

412

Impairment of intangibles and other

937

1,849

Changes in operating assets and liabilities, net of acquisitions:

Receivables

(35,361)

(16,561)

Prepaid expenses

(5,902)

(754)

Other assets

(11,015)

(3,169)

Prepaid income taxes

(7,531)

9,652

Accounts payable and accrued expenses

12,345

(22,506)

Salaries, wages, and benefits payable and self-insurance reserves

3,004

6,482

Other long term liabilities

(26,758)

51,856

Contract liabilities - deferred revenue

(211,473)

317,962

Operating lease payable

(37,360)

(34,226)

Income tax payable

(20,347)

23,800

Net amounts due to/from governmental entities

(433)

(364)

Net cash (used in) provided by operating activities

(100,332)

529,247

Investing activities:

Cash paid for acquisitions, net of cash acquired

(569,583)

(24,545)

Minority interest investments

(10,100)

Proceeds from sale of assets

3,350

7,920

Proceeds from sale of an entity

1,531

Purchases of property, building and equipment

(32,976)

(65,875)

Net cash used in investing activities

(607,778)

(82,500)

Financing activities:

Proceeds from line of credit

1,025,559

296,229

Payments on line of credit

(384,362)

(529,229)

Government stimulus advance

(93,257)

93,257

Proceeds from employee stock purchase plan

2,472

2,177

Payments on deferred financing fees

(3,556)

Payments on repurchasing common stock

(74,643)

Noncontrolling interest distributions

(28,857)

(24,837)

Purchase of additional controlling interest

(2,113)

(24,295)

Sale of noncontrolling interest

1,934

4,856

Withholding taxes paid on stock-based compensation

(11,827)

(10,008)

Net cash provided by (used in) financing activities

431,350

(191,850)

Change in cash

(276,760)

254,897

Cash at beginning of period

286,569

31,672

Cash at end of period

$                 9,809

$             286,569

Supplemental disclosures of cash flow information

Interest paid

$                 4,168

$                 5,011

Income taxes paid

$               43,728

$               16,830

Non-Cash Operating activity:

Operating right of use assets in exchange for lease obligations

41,364

43,047

Non-Cash Investing activity:

Accrued capital expenditures

417

2,922

Net working capital adjustment

890

Non-Cash Financing activity:

Contribution of noncontrolling interest

230


 

 

LHC GROUP, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Amounts in thousands)
(Unaudited)

Three Months Ended December 31, 2021

Home health

Hospice

Home and community-based

Facility-based

HCI

Total

Net service revenue

$

394,481

$

102,027

$

46,229

$

35,284

$

5,408

$

583,429

Cost of service revenue

238,548

65,047

33,911

23,910

3,187

364,603

Gross margin

155,933

36,980

12,318

11,374

2,221

218,826

General and administrative expenses

131,795

30,904

11,508

12,091

3,383

189,681

Impairment of intangibles and other

Operating income (loss)

24,138

6,076

810

(717)

(1,162)

29,145

Interest expense

(2,004)

(334)

(270)

(135)

(54)

(2,797)

Income (loss) before income taxes and noncontrolling interest

22,134

5,742

540

(852)

(1,216)

26,348

Income tax expense (benefit)

4,086

1,123

180

(270)

(341)

4,778

Net income (loss)

18,048

4,619

360

(582)

(875)

21,570

Less net income (loss) attributable to noncontrolling interests

4,554

989

26

313

(4)

5,878

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

$

13,494

$

3,630

$

334

$

(895)

$

(871)

$

15,692

 

 

LHC GROUP, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Amounts in thousands)
(Unaudited)

Three Months Ended December 31, 2020

Home health

Hospice

Home and community-based

Facility-based

HCI

Total

Net service revenue

$

382,636

$

62,419

$

50,058

$

31,914

$

5,302

$

532,329

Cost of service revenue

217,554

38,190

36,514

21,487

3,498

317,243

Gross margin

165,082

24,229

13,544

10,427

1,804

215,086

General and administrative expenses

119,544

16,894

11,923

11,451

3,132

162,944

Impairment of intangibles and other

1,227

1,227

Operating income (loss)

44,311

7,335

1,621

(1,024)

(1,328)

50,915

Interest expense

(52)

(18)

(8)

(9)

(2)

(89)

Income (loss) before income taxes and noncontrolling interest

44,259

7,317

1,613

(1,033)

(1,330)

50,826

Income tax expense (benefit)

10,936

1,631

301

76

(82)

12,862

Net income (loss)

33,323

5,686

1,312

(1,109)

(1,248)

37,964

Less net income (loss) attributable to noncontrolling interests

6,154

1,370

104

(35)

(9)

7,584

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

$

27,169

$

4,316

$

1,208

$

(1,074)

$

(1,239)

$

30,380


 

 

LHC GROUP, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Amounts in thousands)

Year Ended December 31, 2021

Home Health

Hospice

Home and Community-Based

Facility-Based

HCI

Total

Net service revenue

$    1,551,542

$ 311,218

$  189,561

$  132,098

$   35,203

$      2,219,622

Cost of service revenue (excluding depreciation and amortization)

901,685

194,895

137,852

89,270

12,907

1,336,609

General and administrative expenses

501,132

89,693

46,724

45,304

13,582

696,435

Impairment of intangibles and other

937

937

Operating income (loss)

147,788

26,630

4,985

(2,476)

8,714

185,641

Interest expense

(3,103)

(529)

(413)

(208)

(85)

(4,338)

Income (loss) before income taxes and noncontrolling interests

144,685

26,101

4,572

(2,684)

8,629

181,303

Income tax expense (benefit)

30,089

5,344

1,069

(919)

2,104

37,687

Net income (loss)

114,596

20,757

3,503

(1,765)

6,525

143,616

Less net income (loss) attributable to noncontrolling interests

22,060

4,297

467

1,105

(41)

27,888

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

$         92,536

$  16,460

$      3,036

$   (2,870)

$      6,566

$         115,728

Total assets

$    1,719,403

$ 786,671

$  239,314

$  85,005

$   65,228

$      2,895,621

 

 

LHC GROUP, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Amounts in thousands)

Year Ended December 31, 2020

Home Health

Hospice

Home and Community-Based

Facility-Based

HCI

Total

Net service revenue

$       1,463,779

$  243,806

$  194,584

$  128,578

$     32,457

$  2,063,204

Cost of service revenue (excluding depreciation and amortization)

848,663

150,675

150,378

85,827

14,860

1,250,403

General and administrative expenses

464,568

66,454

45,443

43,435

12,947

632,847

Impairment of intangibles and other

1,249

600

1,849

Operating income (loss)

149,299

26,077

(1,237)

(684)

4,650

178,105

Interest expense

(2,856)

(469)

(390)

(297)

(117)

(4,129)

Income (loss) before income taxes and noncontrolling interests

146,443

25,608

(1,627)

(981)

4,533

173,976

Income tax expense (benefit)

30,435

4,925

(357)

(185)

1,225

36,043

Net income (loss)

116,008

20,683

(1,270)

(796)

3,308

137,933

Less net income (loss) attributable to noncontrolling interests

20,525

4,822

(171)

1,193

(32)

26,337

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

$            95,483

$    15,861

$     (1,099)

$     (1,989)

$       3,340

$     111,596

Total assets

$       1,741,044

$  301,475

$  263,708

$  103,401

$     73,726

$  2,483,354

 

 

LHC GROUP, INC. AND SUBSIDIARIES
SELECT CONSOLIDATED KEY STATISTICAL AND FINANCIAL DATA
(Unaudited)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

Key Data:

2021

2020

2021

2020

Home Health Services:

Locations

557

537

557

537

Acquired

25

4

27

13

De novo

1

Divested/consolidated

(16)

(7)

(30)

Total new admissions

111,141

104,440

436,637

410,408

Medicare new admissions

51,983

54,968

213,913

221,300

Average daily census

86,228

83,686

84,995

80,112

Average Medicare daily census

43,325

47,219

44,342

46,311

Medicare completed and billed episodes

84,242

89,824

339,065

350,239

Average Medicare case mix for completed and billed Medicare episodes

1.01

1.01

1.02

1.02

Average reimbursement per Medicare episode (1)

$

2,860

$

2,840

$

2,868

$

2,795

Total visits

2,222,050

2,100,914

8,544,552

8,282,047

Total Medicare visits

1,091,125

1,141,298

4,307,968

4,615,612

Average visits per Medicare episodes

13.0

12.7

12.7

13.2

Organic growth: (2)

Net revenue

0.6

%

(0.1)

%

6.0

%

(4.8)

%

Net Medicare revenue

(8.5)

%

(5.0)

%

(1.3)

%

(9.7)

%

Total new admissions

3.8

%

2.2

%

5.5

%

1.6

%

Medicare new admissions

(7.2)

%

(6.0)

%

(3.7)

%

(7.4)

%

Average daily census

0.7

%

4.9

%

5.8

%

1.5

%

Average Medicare daily census

(10.6)

%

(5.4)

%

(4.6)

%

(8.2)

%

Medicare completed and billed episodes

(7.7)

%

(7.9)

%

(2.4)

%

(8.0)

%

Hospice Services:

Locations

170

120

170

120

Acquired

16

3

49

6

De novo

6

1

6

Divested/consolidated

(1)

(3)

(2)

Admissions

7,516

5,336

24,400

20,342

Average daily census

7,024

4,320

5,408

4,345

Patient days

646,231

397,456

1,972,643

1,590,322

Average revenue per patient day

$

161.87

$

157.55

$

161.09

$

155.33

Organic growth: (2)

Total new admissions

(6.2)

%

10.9

%

0.5

%

6.4

%

Home and Community-Based Services:

Locations (3)

136

124

136

124

Acquired

6

1

4

De novo

3

13

16

Divested/consolidated

(1)

(2)

(3)

Average daily census

12,281

14,021

13,159

14,365

Billable hours

1,779,058

1,884,411

7,376,187

7,734,517

Revenue per billable hour

$

26.22

$

27.33

$

25.91

$

26.22

Facility-Based Services:

Long-term Acute Care

Locations

12

12

12

12

Acquired

Divested/consolidated

(1)

(1)

Patient days

22,443

21,836

86,524

89,930

Average revenue per patient day

$

1,423

$

1,407

$

1,459

$

1,373

Average Daily Census

244

237

237

246

(1)

Prior year Medicare revenue per episode calculation was previously based on standard Medicare episodes. This calculation has been modified to include LUPAs and Outliers in order to achieve a proper comparison to current year under PDGM.

(2)

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.

(3)

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
 December 31,

Twelve Months Ended
 December 31,

2021

2020

2021

2020

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

$

15,692

$

30,380

$

115,728

$

111,596

Add (net of tax):

   Acquisition, de novo and legal expenses (1)

7,385

2,284

17,737

5,629

   Closures/relocations/consolidations (2)

302

2,856

1,850

3,722

   COVID-19 impact: 

      PPE, supplies and other expenses (3)

10,860

8,641

38,001

38,608

      CARES Act tax benefit (4)

(2,210)

 

   ERP implementation (5) 

601

1,827

   Hurricane Ida (6)  

844

   Gain on sale of asset (7)

(951)

   Cost improvement initiatives (8)

4,498

4,498

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

$

39,338

$

44,161

$

179,534

$

157,345

RECONCILIATION OF ADJUSTED NET INCOME
ATTRIBUTABLE TO LHC GROUP, INC. PER DILUTED SHARE
(Amounts in thousands)
(Unaudited)

Three Months Ended
 December 31,

Twelve Months Ended
 December 31,

2021

2019

2021

2019

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

$

0.50

$

0.97

$

3.69

$

3.56

Add (net of tax):

   Acquisition, de novo and legal expenses (1)

0.24

0.07

0.57

0.17

   Closures/relocations/consolidations (2)

0.01

0.09

0.06

0.12

   COVID-19 impact:

      PPE, supplies and other expenses (3)

0.35

0.27

1.22

1.23

      CARES Act tax benefit (4)

(0.07)

   ERP implementation (5)

0.02

0.05

   Hurricane Ida (6)

0.03

   Gain on sale of asset (7)

(0.03)

   Cost improvement initiatives (8)

0.14

0.14

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

$

1.26

$

1.40

$

5.73

$

5.01

 

 

RECONCILIATION OF EBITDA AND ADJUSTED EBITDA
(Amounts in thousands)
(Unaudited)

Three Months Ended
December 31,

Twelve Months Ended
December 31,

2021

2020

2021

2020

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

$

15,692

$

30,380

$

115,728

$

111,596

Add:

   Income tax expense

4,778

12,862

37,687

36,043

   Interest expense, net

2,797

89

4,338

4,129

   Depreciation and amortization 

6,018

5,648

20,917

21,249

   Adjustment items (1) 

32,281

19,392

86,805

65,731

Adjusted EBITDA

$

61,566

$

68,371

$

265,475

$

238,748

1. Adjustment items (pre-tax):

   Acquisition, de novo and legal expenses (1)

10,082

3,214

24,154

7,770

   Closures/relocation/consolidations (2)

412

4,019

2,510

5,193

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

14,826

12,159

51,661

52,768

   ERP implementation (5)

820

2,485

   Hurricane Ida (6)

1,150

   Gain on sale of asset (7)

(1,296)

   Cost improvement initiatives (8)

6,141

6,141

Total adjustments

$

32,281

$

19,392

$

86,805

$

65,731

1.

Expenses and other costs associated with recently announced or completed acquisitions, de novos and legal expenses ($10.1 million and $24.2 million pre-tax in the three months and year ended December 31, 2021, respectively; $3.2 million and $7.8 million pre-tax in the three months and year ended December 31, 2020, respectively).

2.

Loss on the sale of an asset and other expenses associated with a closure or consolidation, including impairment ($0.4 million and $2.5 million pre-tax in the three months and year ended December 31, 2021, respectively; $4.0 million and $5.2 million in the three months and year ended December 31, 2020, respectively).

3.

COVID-19 related expenses for purchases of personal protective equipment (PPE), supplies, wage adjustments and employee healthcare costs ($14.8 million and $51.7 million pre-tax in the three months and year ended December 31, 2021, respectively; $12.2 million and $52.8 million pre-tax in the three months and year ended December 31, 2021, 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.

Expenses and other costs associated with the implementation of an Enterprise Resource Planning software ($0.8 million and $2.5 million pre-tax in the three months and year ended December 31, 2021, respectively).

6.

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

7.

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. 

8.

Expenses associated from cost improvement initiatives implemented in the fourth quarter of 2021, which consisted of contract terminations and general and administrative cost reductions ($6.1 million pre-tax).

 

 

Contact: 

Eric Elliott

Senior Vice President of Finance

(337) 233-1307

eric.elliott@lhcgroup.com

 

 

SOURCE LHC Group, Inc.