Exhibit 99.1

LHC Group announces third quarter 2022 financial results

LAFAYETTE, La., Nov. 2, 2022 /PRNewswire/ -- LHC Group, Inc. (NASDAQ: LHCG) announced its financial results for the quarter ended September 30, 2022.

Third Quarter 2022 Financial Results

A reconciliation of all non-GAAP financial results in this release appears on pages 8-9.

In light of the pending acquisition of the Company by UnitedHealth Group Incorporated ("UNH"), LHC Group will not conduct a quarterly earnings call to discuss the third quarter results.

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 29,000 employees deliver home health, hospice, home- and community-based services, and facility-based care in 37 states and the District of Columbia – reaching 68 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 the timing or anticipated benefits of pending acquisition of the Company by UnitedHealth Group Incorporated. 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 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. These risks, uncertainties and other factors include, but are not limited to, those discussed and described in our most recent Annual Report on Form 10-K, including those risks described in Part I, Item 1A. Risk Factors thereof, and in other reports filed subsequently by us with the Securities and Exchange Commission and, with respect to the pending acquisition of the Company by UnitedHealth Group Incorporated, include, but are not limited to, those discussed in the proxy statement filed by the Company with the SEC on May 17, 2022. All forward-looking statements included in this document are based on information available to us on the date hereof, and the Company assumes no obligation to update any such forward-looking statements to reflect future events or circumstances, except as required by law.

LHC GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
(Unaudited)



September 30,
2022


December 31,
2021

ASSETS




Current assets:




Cash

$         10,522


$          9,809

Receivables:




Patient accounts receivable

331,524


348,820

Other receivables

30,217


13,780

Total receivables

361,741


362,600

Prepaid income taxes

19,303


7,531

Prepaid expenses

23,128


28,401

Other current assets

25,687


24,801

Total current assets

440,381


433,142

Property, building and equipment, net of accumulated depreciation of $110,600 and $98,394, respectively

153,806


153,959

Goodwill

1,750,420


1,748,426

Intangible assets, net of accumulated amortization of $22,865 and $19,152, respectively

395,309


400,002

Operating lease right of use asset

108,975


113,399

Other assets

65,263


46,693

Total assets

$    2,914,154


$   2,895,621

LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:




Accounts payable and other accrued liabilities

$       108,748


$        98,118

Salaries, wages, and benefits payable

84,412


100,532

Self-insurance reserves

38,734


33,784

Contract liabilities - deferred revenue

4,840


106,489

Current operating lease payable

36,998


37,630

Amounts due to governmental entities

2,499


5,447

Current liabilities - deferred employer payroll tax

26,790


26,790

Total current liabilities

303,021


408,790

Deferred income taxes

87,661


70,026

Income taxes payable

7,988


7,320

Revolving credit facility

738,000


661,197

Long-term operating lease liabilities

74,992


78,688

                                   Total liabilities

1,211,662


1,226,021

Noncontrolling interest — redeemable

16,978


17,501

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; 36,733,790 and 36,549,524 shares issued, and 30,587,735 and 30,634,414 shares outstanding, respectively

367


365

Treasury stock — 6,146,055 and 5,915,110 shares at cost, respectively

(195,447)


(164,790)

Additional paid-in capital

997,115


979,642

Retained earnings

798,372


751,025

Total LHC Group, Inc. stockholders' equity

1,600,407


1,566,242

Noncontrolling interest — non-redeemable

85,107


85,857

Total stockholders' equity

1,685,514


1,652,099

Total liabilities and stockholders' equity

$    2,914,154


$   2,895,621

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,


2022


2021


2022


2021

Net service revenue

$       576,913


$       565,451


$    1,724,601


$    1,636,193

Cost of service revenue (excluding depreciation and amortization)

347,772


343,862


1,052,093


972,006

Gross margin

229,141


221,589


672,508


664,187

General and administrative expenses

189,051


176,444


569,800


506,754

Impairment of intangibles and other

2,059



4,130


937

Operating income

38,031


45,145


98,578


156,496

Interest expense

(9,053)


(1,135)


(19,631)


(1,541)

Income before income taxes and noncontrolling interest

28,978


44,010


78,947


154,955

Income tax expense

6,966


10,150


17,014


32,909

Net income

22,012


33,860


61,933


122,046

Less net income attributable to noncontrolling interests

4,703


6,126


14,586


22,010

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

$         17,309


$         27,734


$         47,347


$       100,036









Earnings per share:








Basic

$              0.57


$              0.89


$              1.55


$              3.21

Diluted

$              0.56


$              0.88


$              1.55


$              3.18

Weighted average shares outstanding:








Basic

30,565


31,238


30,527


31,205

Diluted

30,706


31,434


30,639


31,422

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



Nine months ended 

 September 30,


2022


2021

Operating activities:




Net income

$       61,933


$           122,046

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




Depreciation and amortization expense

17,483


14,899

Amortization of operating lease right of use asset

30,769


27,526

Stock-based compensation expense

15,290


11,717

Deferred income taxes

17,635


23,356

Loss (gain) on disposal of assets

484


(1,190)

    Impairment of intangibles and other

4,130


937

Changes in operating assets and liabilities, net of acquisitions:




Receivables

(684)


(27,038)

Prepaid expenses

5,273


397

Other assets

(4,208)


(6,368)

Prepaid income taxes

(11,772)


(11,575)

Prepaid taxes


(12,509)

Accounts payable and accrued expenses

16,282


6,626

Salaries, wages, and benefits payable

(11,251)


(9,687)

Contract liabilities - deferred revenue

(101,649)


(141,629)

Operating lease liabilities

(30,568)


(27,472)

Income taxes payable

668


(20,819)

Net amounts due to/from governmental entities

223


(833)

Net cash provided by (used in) operating activities

10,038


(51,616)

Investing activities:




Purchases of property, building and equipment

(14,074)


(23,548)

Proceeds from sale of property, building and equipment


3,350

Cash paid for acquisitions, net of cash acquired

(2,570)


(383,475)

Purchase of intangible assets

(100)


Proceeds from sale of an entity


1,531

Minority interest investments

(15,250)


(10,100)

Net cash used in investing activities

(31,994)


(412,242)

Financing activities:




Proceeds from line of credit

815,155


544,056

Payments on line of credit

(738,352)


(209,056)

Government stimulus advance


(93,257)

Proceeds from employee stock purchase plan

1,840


1,877

  Payments on deferred financing fees


(2,855)

   Payments on repurchasing common stock

(34,565)


Noncontrolling interest distributions

(16,346)


(22,187)

Withholding taxes paid on stock-based compensation

(4,630)


(11,594)

Purchase of additional controlling interest

(433)


(2,113)

Sale of noncontrolling interest


1,934

Net cash provided by financing activities

22,669


206,805

Change in cash

713


(257,053)

Cash at beginning of period

9,809


286,569

Cash at end of period

$       10,522


$             29,516

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





Supplemental disclosures of cash flow information:




Interest paid

$       18,049


$               1,532

Income taxes paid

$       10,701


$             42,036

Non-Cash Operating Activity:




Operating right of use assets in exchange for lease obligations

$       28,435


$             41,776

Reduction to right of use assets and liabilities

$         2,089


$               2,746

Non-Cash Investing Activity:




Net working capital adjustment

$         1,440


$                     —

Accrued capital expenditures

$            126


$               1,807

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



Three months ended September 30, 2022


Home health
services


Hospice
services


Home and
community-
based
services


Facility-
based
services


HCI


Total

Net service revenue

$     373,335


$   103,799


$    47,978


$     31,441


$    20,360


$     576,913

Cost of service revenue (excluding depreciation and amortization)

217,790


68,951


35,727


22,549


2,755


347,772

General and administrative expenses

126,052


32,384


11,893


12,098


6,624


189,051

Impairment of intangibles and other


1,590


469




2,059

Operating income (loss)

29,493


874


(111)


(3,206)


10,981


38,031

Interest expense

(6,347)


(1,356)


(808)


(362)


(180)


(9,053)

Income (loss) before income taxes and noncontrolling interest

23,146


(482)


(919)


(3,568)


10,801


28,978

Income tax expense (benefit)

5,723


(439)


(165)


(927)


2,774


6,966

Net income (loss)

17,423


(43)


(754)


(2,641)


8,027


22,012

Less net income (loss) attributable to non controlling interests

3,838


1,269


(125)


(439)


160


4,703

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

$       13,585


$     (1,312)


$        (629)


$     (2,202)


$      7,867


$       17,309

Total assets

$  1,717,209


$   798,668


$  238,082


$     80,223


$    79,972


$ 2,914,154

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 noncontrolling interests

5,157


1,085


77


(187)


(6)


6,126

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

$       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

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



Nine months ended September 30, 2022


Home health
services


Hospice
services


Home and
community-
based
services


Facility-
based
services


HCI


Total

Net service revenue

$   1,154,009


$   308,322


$   137,036


$     94,289


$     30,945


$ 1,724,601

Cost of service revenue (excluding depreciation and amortization)

674,508


202,864


96,470


69,584


8,667


1,052,093

General and administrative expenses

387,482


97,152


35,755


35,737


13,674


569,800

Impairment of intangibles and other

930


2,677


523




4,130

Operating income (loss)

91,089


5,629


4,288


(11,032)


8,604


98,578

Interest expense

(13,805)


(2,803)


(1,785)


(851)


(387)


(19,631)

Income (loss) before income taxes and noncontrolling interest

77,284


2,826


2,503


(11,883)


8,217


78,947

Income tax expense (benefit)

17,057


(3)


680


(2,849)


2,129


17,014

Net income (loss)

60,227


2,829


1,823


(9,034)


6,088


61,933

Less net income (loss) attributable to non controlling interests

12,758


2,837


(74)


(1,085)


150


14,586

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

$        47,469


$             (8)


$       1,897


$     (7,949)


$       5,938


$      47,347

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

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




Three Months Ended
 September 30,

Nine Months

Ended
 September 30,



2022


2021


2022


2021

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


$

17,309



$

27,734



$

47,347



$

100,036


Add (net of tax):









   Acquisition, de novo and legal expenses (1)


4,244



6,875



14,034



10,352


   Closures/relocations/consolidations (2)


3,970



369



9,112



1,548


   COVID-19 impact: 













      PPE, supplies and other expenses (3)




10,290





27,141


   ERP implementation (4)


1,360



498



5,498



1,226


   Cost improvement initiatives (5)


3,621





13,825




   Cost report and contract settlements (6)


2,063





6,026




   Hurricane Ida (7)




844





844


   Gain on sale of asset (8)




(951)





(951)


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


$

32,567



$

45,659



$

95,842



$

140,196


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




Three Months Ended
 September 30,

Nine Months

Ended
 September 30,



2022


2021


2022


2021

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


$

0.56



$

0.88



$

1.55



$

3.18


Add (net of tax):









   Acquisition, de novo and legal expenses (1)


0.14



0.22



0.46



0.33


   Closures/relocations/consolidations (2)


0.13



0.01



0.30



0.05


   COVID-19 impact:













      PPE, supplies and other expenses (3)




0.33





0.87


   ERP implementation (4)


0.04



0.01



0.17



0.03


   Cost improvement initiatives (5)


0.12





0.45




   Cost report and contract settlements (6)


0.07





0.20




   Hurricane Ida (7)




0.03





0.03


   Gain on sale of asset (8)




(0.03)





(0.03)


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


$

1.06



$

1.45



$

3.13



$

4.46


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




Three Months Ended
September 30,

Nine Months Ended
September 30,



2022


2021


2022


2021

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


$

17,309



$

27,734



$

47,347



$

100,036


Add:









   Income tax expense


6,966



10,150



17,014



32,909


   Interest expense, net


9,053



1,135



19,631



1,541


   Depreciation and amortization 


5,759



5,358



17,483



14,899


   Adjustment items (*)


21,167



24,415



66,304



54,524


Adjusted EBITDA


$

60,254



$

68,792



$

167,779



$

203,909




















* Adjustment items (pre-tax):









   Acquisition, de novo and legal expenses (1)


5,888



9,364



19,195



14,072


   Closures/relocation/consolidations (2)


5,508



502



12,491



2,098


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




14,016





36,835


   ERP implementation (4)


1,886



679



7,505



1,665


   Cost improvement initiatives (5)


5,023





18,888




   Cost report and contract settlements (6)


2,862





8,225




   Hurricane Ida (7)




1,150





1,150


   Gain on sale of asset (8)




(1,296)





(1,296)


Total adjustments


$

21,167



$

24,415



$

66,304



$

54,524



















  1. Expenses and other costs associated with recently announced or completed acquisitions, de novos and the pending acquisition by UnitedHealth Group. ($5.9 million pre-tax in the three months ended September 30, 2022 and $19.2 million pre-tax in the nine months ended September 30, 2022; $9.4 million and $14.1 million pre-tax in the three and nine months ended September 30, 2021, respectively).
  2. Loss on the sale of an asset and other expenses associated with a closure or consolidation, including impairment ($5.5 million pre-tax in the three months ended September 30, 2022 and $12.5 million in the nine months ended September 30, 2022; $0.5 million and $2.1 million pre-tax in the three and nine months ended September 30, 2021, respectively).
  3. COVID-19 related expenses for purchases of personal protective equipment (PPE), supplies and wage adjustments (No adjustments were made in the three months and nine months ended September 30, 2022; $14.0 million and $36.8 million pre-tax in the three and nine months ended September 30, 2021, respectively).
  4. Expenses and other costs associated with the implementation of an Enterprise Resource Planning software ($1.9 million pre-tax in the three months ended September 30, 2022 and $7.5 million pre-tax in the nine months ended September 30, 2022; $0.7 million and $1.7 million pre-tax in the three and nine months ended September 30, 2021, respectively).
  5. Expenses associated with cost improvement initiatives implemented in the first three quarters of 2022, which consisted of contract terminations and general and administrative cost reductions ($5.0 million pre-tax in the three months ended September 30, 2022 and $18.9 million pre-tax in the nine months ended September 30, 2022).
  6. Expenses associated with a 2004 cost report settlement along with other contract settlements ($1.2 million pre-tax in the three months ended September 30, 2022 and $8.2 million in the nine months ended September 30, 2022).
  7. Direct recovery costs associated with Hurricane Ida ($1.2 million pre-tax in the three and nine months ended September 30, 2021).
  8. 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


eric.elliott@lhcgroup.com