Strong Execution on Organic Growth and M&A Strategy 
Affirms 2019 Guidance

LAFAYETTE, La., Aug. 07, 2019 (GLOBE NEWSWIRE) -- LHC Group, Inc. (NASDAQ: LHCG) announced its financial results for the quarter ended June 30, 2019. Unless otherwise noted, all results for the second quarter ended June 30, 2019 are compared with the second quarter ended June 30, 2018.

Second Quarter of 2019 Financial Results - All Businesses on Track for First Half of 2019

• Net service revenue increased 3.2% to $517.8 million.
• Net income attributable to LHC Group’s common stockholders increased 48.8% to $25.0 million. Earnings per diluted share attributable to LHC Group’s common stockholders increased 45.4% to $0.80 which includes the effect of costs and expenses described within the adjusted results below. 
  
• Adjusted net income attributable to LHC Group’s common stockholders increased 28.8% to $33.3 million. Adjusted earnings per diluted share attributable to LHC Group’s common stockholders increased 27.4% to $1.07.
  
• Adjusted results for the second quarter of 2019 exclude transaction and other transition related costs and expenses and charges and expenses related to certain closures and relocations in the aggregate amount of $8.3 million after tax, or $0.27 per diluted share.
• Organic growth in home health admissions was 9.1% excluding Almost Family locations.
• Organic growth in home health revenue was 6.6% excluding Almost Family locations.
• Organic growth in hospice admissions was 9.6% excluding Almost Family locations.

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

Operational and Strategic Highlights

• LHC Group quality and patient satisfaction scores continue to exceed the national average and outpace industry peers with 99% of its same store locations having CMS Quality Star ratings of four stars or greater when excluding Almost Family locations and other recent acquisitions. We continue to experience quarter over quarter improvement in each of our quality and patient satisfaction scores through our Almost Family locations and other recently acquired locations.
• LHC Group realized a total of approximately $7.8 million in pre-tax cost synergies in the second quarter from its acquisition of Almost Family, which now brings the realized cost synergies to an annual run rate of $31.2 million.
• To date in 2019, LHC Group has acquired or agreed to acquire 15 home health, six hospice, and three home and community based services locations in seven states and the District of Columbia, the majority of which are hospital joint ventures. These acquisitions represent approximately $81.0 million in annualized revenue.

Commenting on the results, Keith G. Myers, LHC Group’s Chairman and Chief Executive Officer, said, “Since our founding 25 years ago, change in the healthcare industry is something to which we are accustomed and has transformed us into the leader we are today in in-home healthcare. Navigating change requires organizational alignment, leadership and clinical alignment. With a seat at the table with our more than 350 hospital system joint venture partners and with payors in value-based arrangements, we are uniquely positioned to benefit from the transition of patients to the most clinically appropriate, cost-effective setting possible – within the comfort and privacy of the home or place of residence.” 

“At LHC Group, we are always clinically focused and ensure that within any model of care that we are patient-first, outcomes-based, and deliver industry leading quality and patient satisfaction,” added Myers. “This commitment, backed by an exceptionally deep team and national scale, continues to generate strong organic growth. It also provides the foundation for the compelling value proposition so attractive to joint venture partners and for the pursuit of new growth opportunities that can extend our in-home healthcare footprint.”

M&A Strategy - Executing on Strong Pipeline of Joint Ventures and Acquisitions
On January 31, 2019, LHC Group and Unity Health finalized an equity partnership agreement to purchase and share ownership of two home health providers in Arkansas: Unity Health – White County Medical Center Home Health in Searcy and Unity Health – Harris Medical Center Home Health in Newport. These agencies, which serve their local communities and the Northeast Arkansas region, represent annualized revenue of approximately $3.5 million.

LHC Group and Geisinger Home Health and Hospice, and AtlantiCare Home Health and Hospice finalized their joint venture partnership to enhance home health and hospice services at Geisinger locations in Pennsylvania on April 1, 2019 and at AtlantiCare - a Member of Geisinger in Atlantic County, New Jersey, on June 1, 2019. These agencies, which serve their local communities in the states of Pennsylvania and New Jersey, represent annualized revenue of approximately $35.0 million.

On July 30, 2019, LHC Group agreed to purchase a home health and home and community based services (HCBS) provider located in Baltimore from VNA of Maryland and Elite Home Care Services. The agreement includes 100 percent of the provider’s assets and is expected to close on September 1, 2019, subject to customary closing conditions. LHC Group expects annualized revenue from this acquisition of approximately $35.0 million.

On August 1, 2019, LHC Group and Capital Regional Medical Center (CRMC) finalized their joint venture to purchase from SSM Health the assets of three home health and hospice locations in Jefferson City and Mexico, Missouri. These agencies, which serve their local communities in the state of Missouri, represent annualized revenue of approximately $3.5 million.

On August 1, 2019, LHC Group and Atmore Community Hospital finalized a JV partnership agreement to purchase and share ownership of a home health provider in Atmore, Alabama. The provider will continue operating under the name Atmore Community Home Care, serving patients and families in the community and the region with in-home healthcare. LHC Group expects annualized revenue from this joint venture of approximately $2.0 million.

On August 1, 2019, LHC Group purchased two HCBS locations in West Union and Waverly, Ohio from Comfort Home Care. The agreement includes 100 percent of each location’s assets, which will be consolidated under LHC Group’s existing HCBS provider, HomeCare by Blackstone, in Columbus. LHC Group expects annualized revenue from this acquisition of approximately $2.0 million.

Full Year 2019 Guidance Affirmed - 21.1% Year-over-Year Adjusted Earnings Growth at the Midpoint Continues to be Fueled by Strong Organic Growth and Acquisition Accretion

The Company affirmed its full year 2019 guidance issued on May 8, 2019 for net service revenue in a range of $2.09 billion to $2.14 billion; adjusted earnings per diluted share in a range of $4.25 to $4.35; and Adjusted EBITDA, less non-controlling interest, in a range of $214 million to $220 million.

The Company’s guidance ranges do not take into account the impact of future reimbursement changes, if any, future acquisitions, if made, de novo locations, if opened, location closures, if any, or future legal expenses, if necessary. The adjusted earnings guidance for 2019 is presented on a non-GAAP basis, as it does not include the impact of transaction related costs, integration related expenses or other expenses related to the acquisition of Almost Family or other acquisitions. Given the difficulty in predicting the future amount and timing of these expenses, the Company cannot reasonably provide a full reconciliation of its fiscal year 2019 adjusted earnings per share guidance to GAAP earnings per share.

Joshua L. Proffitt, LHC Group’s Chief Financial Officer, added, “We are in growth mode for the balance of 2019 and 2020 as we are confident we will thrive no matter the eventual outcome of PDGM or other regulatory initiatives. With the achievement of annualized run rate pre-tax synergies of $31.2 million from the Almost Family acquisition, we continue planning for the next phase of both earnings and top line growth that we expect in 2020 from completion of our final phases of the Almost Family integration, the pursuit of additional revenue synergies and our continual improvements in quality of care and patient satisfaction Star ratings across the former Almost Family locations. Our strong capital structure and available liquidity provide a solid advantage for us to maintain and even increase our M&A activity.”

Conference Call
LHC Group will host a conference call on Thursday, August 8, 2019, at 9:00 a.m. Eastern time to discuss its second quarter 2019 results. The toll-free number to call for this interactive teleconference is (866) 393‑1608 (international callers: (973) 890-8327). A telephonic replay of the conference call will be available through midnight on August 15, 2019, by dialing (855) 859‑2056 (international callers: (404) 537-3406) and entering confirmation number 2959016.

The Company has posted supplemental financial information on the second quarter results that it will reference during the conference call. The supplemental information can be found under Quarterly Results on the Company’s Investor Relations page. A live webcast of LHC Group’s conference call will be available under the Investor Relations section of the Company’s website, www.LHCGroup.com. A one-year online replay will be available approximately one hour following the conclusion of the live broadcast.

About LHC Group, Inc.
LHC Group, Inc. is a national provider of in-home healthcare services and innovations, providing quality, affordable healthcare services to patients in the privacy and comfort of their home or place of residence. LHC Group’s services cover a wide range of healthcare needs for patients and families dealing with illness, injury, or chronic conditions. The company’s 32,000 employees deliver home health, hospice, home and community based services, and facility-based care in 35 states and the District of Columbia - reaching 60 percent of the U.S. population aged 65 and older. LHC Group is the preferred in-home healthcare partner for 350 leading hospitals around the country. In 2019, the company was named to the inaugural Forbes list of “America’s Best-in-State Employers.”

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 2019 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)

	June 30,  2019				December 31, 2018
	(Unaudited)
ASSETS
Current assets:
Cash	$	26,737			$	49,363
Receivables:
Patient accounts receivable	272,941				252,592
Other receivables	6,153				6,658
Amounts due from governmental entities	1,018				830
Total receivables	280,112				260,080
Prepaid income taxes	4,511				11,788
Prepaid expenses	25,134				24,775
Other current assets	21,310				20,899
Total current assets	357,804				366,905
Property, building and equipment, net of accumulated depreciation of $62,354 and $55,253, respectively	80,088				79,563
Goodwill	1,188,227				1,161,717
Intangible assets, net of accumulated amortization of $15,854 and $15,176, respectively	296,716				297,379
Assets held for sale	2,500				2,850
Operating lease right of use asset	84,638				—
Other assets	19,882				20,301
Total assets	$	2,029,855			$	1,928,715
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and other accrued liabilities	$	79,038			$	77,135
Salaries, wages, and benefits payable	81,645				84,254
Self-insurance reserves	32,570				32,776
Current operating lease liabilities	26,453				—
Current portion of long-term debt	—				7,773
Amounts due to governmental entities	5,065				4,174
Total current liabilities	224,771				206,112
Deferred income taxes	46,919				43,306
Income taxes payable	4,671				4,297
Revolving credit facility	230,000				235,000
Long term notes payable	—				930
Operating lease payable	59,980				—
Total liabilities	566,341				489,645
Noncontrolling interest — redeemable	15,467				14,596
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 in 2019 and 2018; 35,837,779 and 35,636,414 shares issued in 2019 and 2018, respectively	358				356
Treasury stock —  5,052,927 and 4,958,721shares at cost, respectively	(57,893		)		(49,374		)
Additional paid-in capital	941,923				937,968
Retained earnings	471,831				427,975
Total LHC Group, Inc. stockholders’ equity	1,356,219				1,316,925
Noncontrolling interest — non-redeemable	91,828				107,549
Total equity	1,448,047				1,424,474
Total liabilities and equity	$	2,029,855			$	1,928,715

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

	Three Months Ended June 30,								Six Months Ended June 30,
	2019				2018				2019				2018
Net service revenue	$	517,842			$	502,024			$	1,020,427			$	793,078
Cost of service revenue	325,860				321,004				646,852				509,622
Gross margin	191,982				181,020				373,575				283,456
General and administrative expenses	148,584				149,214				293,805				241,245
Other intangible impairment charge	1,018				778				7,337				778
Operating income	42,380				31,028				72,433				41,433
Interest expense	(2,885		)		(3,202		)		(5,937		)		(4,652		)
Income before income taxes and noncontrolling interest	39,495				27,826				66,496				36,781
Income tax expense	9,557				7,170				13,157				8,147
Net income	29,938				20,656				53,339				28,634
Less net income attributable to noncontrolling interests	4,938				3,859				9,483				6,842
Net income attributable to LHC Group, Inc.’s common stockholders	$	25,000			$	16,797			$	43,856			$	21,792
Earnings per share:
Basic	$	0.81			$	0.55			$	1.42			$	0.90
Diluted	$	0.80			$	0.55			$	1.41			$	0.89
Weighted average shares outstanding:
Basic	30,960				30,498				30,899				24,179
Diluted	31,201				30,742				31,188				24,403

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

	Six Months Ended  June 30,
	2019				2018
Operating activities:
Net income	$	53,339			$	28,634
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	8,400				7,548
Amortization of operating lease right of use asset	15,528				—
Stock-based compensation expense	4,392				3,919
Deferred income taxes	4,821				1,714
Loss (gain) on disposal of assets	312				(126		)
Impairment of intangibles and other	7,337				778
Changes in operating assets and liabilities, net of acquisitions:
Receivables	(22,704		)		(18,897		)
Prepaid expenses and other assets	(324		)		(6,521		)
Prepaid income taxes	5,063				4,624
Accounts payable and accrued expenses	(18,735		)		8,729
Income taxes payable	374				—
Net amounts due to/from governmental entities	528				(704		)
Net cash provided by operating activities	58,331				29,698
Investing activities:
Purchases of property, building and equipment	(7,599		)		(13,760		)
Cash acquired from business combinations, net of cash paid	(20,431		)		13,086
Net cash used in investing activities	(28,030		)		(674		)
Financing activities:
Proceeds from line of credit	25,000				270,084
Payments on line of credit	(30,000		)		(278,884		)
Proceeds from employee stock purchase plan	931				634
Payments on debt	(7,650		)		135
Payments on deferred financing fees	—				(1,881		)
Noncontrolling interest distributions	(13,857		)		(5,763		)
Withholding taxes paid on stock-based compensation	(8,519		)		(4,095		)
Purchase of additional controlling interest	(18,748		)		(55		)
Exercise of options	(84		)		—
Sale of noncontrolling interest	—				3,322
Net cash (used in) financing activities	(52,927		)		(16,503		)
Change in cash	(22,626		)		12,521
Cash at beginning of period	49,363				2,849
Cash at end of period	$	26,737			$	15,370
Supplemental disclosures of cash flow information:
Interest paid	$	4,038			$	3,112
Income taxes paid	$	4,042			$	2,139

Non-cash operating activity: The Company recorded $98.1 million in operating lease right of use assets in exchange for lease obligations.

Non-cash financing activity:  The Company accrued $1.0 million for capital expenditures primarily related to the home office expansion project during the six months ended June 30, 2019.

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

	Three Months Ended June 30, 2019
	Home health services				Hospice services				Home and community- based services				Facility- based services				HCI				Total
Net service revenue	$	375,253			$	55,057			$	52,414			$	27,975			$	7,143			$	517,842
Cost of service revenue	230,545				34,858				39,505				17,572				3,380				325,860
General and administrative expenses	108,958				15,096				11,213				9,335				3,982				148,584
Other intangible impairment charge	748				270				—				—				—				1,018
Operating income (loss)	35,002				4,833				1,696				1,068				(219		)		42,380
Interest expense	(2,023		)		(323		)		(284		)		(170		)		(85		)		(2,885		)
Income (loss) before income taxes and noncontrolling interest	32,979				4,510				1,412				898				(304		)		39,495
Income tax expense (benefit)	8,070				1,581				(171		)		148				(71		)		9,557
Net income (loss)	24,909				2,929				1,583				750				(233		)		29,938
Less net income (loss) attributable to noncontrolling interests	3,948				898				(267		)		365				(6		)		4,938
Net income (loss) attributable to LHC Group, Inc.’s common stockholders	$	20,961			$	2,031			$	1,850			$	385			$	(227	)		$	25,000
Total assets	$	1,407,221			$	234,789			$	240,746			$	77,686			$	69,413			$	2,029,855

	Three Months Ended June 30, 2018
	Home health services				Hospice services				Home and community- based services				Facility- based services				HCI				Total
Net service revenue	$	360,276			$	50,554			$	52,753			$	28,304			$	10,137			$	502,024
Cost of service revenue	223,490				32,998				39,682				19,307				5,527				321,004
General and administrative expenses	105,674				15,108				12,444				10,601				5,387				149,214
Other intangible impairment charge	291				—				—				487				—				778
Operating income (loss)	30,821				2,448				627				(2,091		)		(777		)		31,028
Interest expense	(2,256		)		(473		)		(158		)		(159		)		(156		)		(3,202		)
Income (loss) before income taxes and noncontrolling interest	28,565				1,975				469				(2,250		)		(933		)		27,826
Income tax expense (benefit)	7,091				483				139				(313		)		(230		)		7,170
Net income (loss)	21,474				1,492				330				(1,937		)		(703		)		20,656
Less net income (loss) attributable to noncontrolling interests	3,810				412				(90		)		(207		)		(66		)		3,859
Net income (loss) attributable to LHC Group, Inc.’s common stockholders	$	17,664			$	1,080			$	420			$	(1,730	)		$	(637	)		$	16,797
Total assets	$	1,306,773			$	189,447			$	255,456			$	66,665			$	63,329			$	1,881,670

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

	Six Months Ended June 30, 2019
	Home health services				Hospice services				Home and community- based services				Facility- based services				HCI				Total
Net service revenue	$	738,288			$	106,793			$	104,199			$	55,676			$	15,471			$	1,020,427
Cost of service revenue	456,668				68,034				79,360				35,304				7,486				646,852
General and administrative expenses	213,797				29,949				22,195				18,512				9,352				293,805
Other intangible impairment charges	7,066				271				—				—				—				7,337
Operating income (loss)	60,757				8,539				2,644				1,860				(1,367		)		72,433
Interest expense	(4,161		)		(666		)		(585		)		(350		)		(175		)		(5,937		)
Income (loss) before income taxes and noncontrolling interest	56,596				7,873				2,059				1,510				(1,542		)		66,496
Income tax expense (benefit)	11,278				2,027				(20		)		153				(281		)		13,157
Net income (loss)	45,318				5,846				2,079				1,357				(1,261		)		53,339
Less net income (loss) attributable to noncontrolling interests	7,728				1,499				(577		)		846				(13		)		9,483
Net income (loss) attributable to LHC Group, Inc.’s common stockholders	$	37,590			$	4,347			$	2,656			$	511			$	(1,248	)		$	43,856

	Six Months Ended June 30, 2018
	Home health services				Hospice services				Home and community- based services				Facility- based services				HCI				Total
Net service revenue	$	564,463			$	93,180			$	66,844			$	58,454			$	10,137			$	793,078
Cost of service revenue	353,651				61,016				50,472				38,956				5,527				509,622
General and administrative expenses	171,963				28,406				15,742				19,747				5,387				241,245
Other intangible impairment charges	291				—				—				487				—				778
Operating income	38,558				3,758				630				(736		)		(777		)		41,433
Interest expense	(3,344		)		(690		)		(229		)		(232		)		(157		)		(4,652		)
Income (loss) before income taxes and noncontrolling interest	35,214				3,068				401				(968		)		(934		)		36,781
Income tax expense (benefit)	7,814				594				124				(155		)		(230		)		8,147
Net income (loss)	27,400				2,474				277				(813		)		(704		)		28,634
Less net income (loss) attributable to noncontrolling interests	6,047				829				(69		)		101				(66		)		6,842
Net income (loss) attributable to LHC Group, Inc.’s common stockholders	$	21,353			$	1,645			$	346			$	(914	)		$	(638	)		$	21,792

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

		Three Months Ended June 30,									Six Months Ended June 30,
Key Data:		2019					2018				2019					2018
Home Health Services:
Locations		539					568				539					568
Acquired		7					253				15					254
De novo		—					—				—					—
Divested/consolidated		(8		)			(4		)		(16		)			(5		)
Total new admissions		95,198					93,905				191,388					147,028
Medicare new admissions		57,391					59,012				116,284					92,040
Average daily census		77,137					76,708				76,925					76,708
Average Medicare daily census		49,827					51,279				49,918					51,279
Medicare completed and billed episodes		93,824					96,370				184,795					150,908
Average Medicare case mix for completed and billed Medicare episodes		1.10					1.10				1.10					1.09
Average reimbursement per completed and billed Medicare episodes		$	3,084				$	2,933			$	3,067				$	2,871
Total visits		2,562,147					2,505,210				5,083,156					4,000,328
Total Medicare visits		1,686,243					1,703,373				3,353,150					2,712,798
Average visits per completed and billed Medicare episodes		18.0					17.6				18.1					18.0
Organic growth excluding Almost Family (1)(2)
Net revenue		6.6			%		9.0		%		6.8			%		9.0		%
Net Medicare revenue		4.7			%		5.1		%		3.2			%		4.9		%
Total new admissions		9.1			%		7.9		%		7.4			%		7.2		%
Medicare new admissions		1.9			%		5.4		%		1.0			%		4.8		%
Average daily census		4.6			%		2.3		%		4.3			%		2.9		%
Average Medicare daily census		(0.6		)	%		(1.0		)%		(1.2		)	%		(0.8		)%
Medicare completed and billed episodes		0.2			%		2.4		%		(0.2		)	%		1.0		%
Hospice Services:
Locations		104					106				104					106
Acquired		5					15				6					15
De novo		—					—				—					—
Divested/Consolidated		(4		)			—				(5		)			—
Admissions		4,637					4,528				9,225					8,582
Average daily census		4,070					3,659				3,911					3,399
Patient days		370,407					332,978				707,875					615,198
Average revenue per patient day		$	152.44				$	153.28			$	154.42				$	153.27
Organic growth excluding Almost Family: (1)(2)
Total new admissions		9.6			%		2.5		%		7.9			%		3.8		%
Home and Community-Based Services:
Locations		80					80				80					80
Acquired		3					64				3					64
De novo		—					—				—					4
Divested/Consolidated		(3		)			—				(3		)			—
Average daily census		14,002					14,557				14,033					14,528
Billable hours		2,292,719					2,227,831				4,564,613					2,706,614
Revenue per billable hour		$	23.46				$	24.13			$	23.44				$	25.15
Facility-Based Services:
Long-term Acute Care
Locations		12					12				12					12
Acquired		—					—				—					—
Divested/Consolidated		—					(2		)		—					(2		)
Patient days		19,970					21,303				39,606					43,863
Average revenue per patient day		$	1,270				$	1,300			$	1,278				$	1,274
Occupancy rate		70.8			%		69.9		%		70.6			%		72.4		%

(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) Almost Family locations remain counted as acquired locations due to continued system integrations, which will be completed by the end of 2019.

LHC GROUP, INC. AND SUBSIDIARIES
RECONCILIATION OF REVENUE AFTER ADOPTION OF ASU 2014-09
(Amounts in thousands)
(Unaudited)

		Three Months Ended  June 30,								Six Months Ended  June 30,
		2019				2018				2019				2018
Revenue		$	525,120			$	509,742			$	1,036,057			$	805,722
Less:  Implicit price concession (1)		7,278				7,718				15,630				12,644
Net service revenue		$	517,842			$	502,024			$	1,020,427			$	793,078

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

		Three Months Ended  June 30,								Six Months Ended  June 30,
		2019				2018				2019				2018
Net income attributable to LHC Group, Inc.’s common stockholders		$	25,000			$	16,797			$	43,856			$	21,792
Add (net of tax):
AFAM and other acquisition expenses (2)		6,713				5,860				11,981				12,171
Closures/relocations/consolidations (3)		1,537				2,464				3,781				2,464
Income tax effect of adjustments to income		—				689				—				689
Provider moratorium impairment (4)		—				—				4,332				—
Adjusted net income attributable to LHC Group, Inc.’s common stockholders		$	33,250			$	25,810			$	63,950			$	37,116

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

		Three Months Ended  June 30,								Six Months Ended  June 30,
		2019				2018				2019				2018
Net income attributable to LHC Group, Inc.’s common stockholders		$	0.80			$	0.55			$	1.41			$	0.89
Add (net of tax):
AFAM and other acquisition expenses (2)		0.22				0.19				0.39				0.53
Closures/relocations/consolidations (3)		0.05				0.08				0.12				0.08
Income tax effect of adjustments to income		—				0.02				—				0.02
Provider moratorium impairment (4)		—				—				0.14				—
Adjusted net income attributable to LHC Group, Inc.’s common stockholders		$	1.07			$	0.84			$	2.06			$	1.52

1. Provision for bad debts are classified as implicit price concessions in determining the transaction price of the Company's net service revenue.
2. Transition, integration and Homecare Homebase conversion expenses and other costs associated with the acquisition of Almost Family and other recently announced or completed acquisitions. ($9.3 million pre-tax in the three months ended June 30, 2019 and $16.6 million in the six months ended June 30, 2019, which includes a $2.2 million lease termination charge that occurred in the second quarter of 2019).
3. Expenses and impairments associated with the closure or consolidation of 13 locations in the second quarter of 2019 along with residual costs and expenses in connection with the closures in the first quarter of 2019. ($2.1 million pre-tax in the three months ended June 30, 2019 and $5.2 million in the six months ended June 30, 2019).
4. During the six months ended June 30, 2019, the Company recorded $6.0 million of moratoria impairment as a result of the Centers for Medicare and Medicaid Services (“CMS”) action to remove all federal moratoria with regard to Medicare provider enrollment.

Contact: 
Eric Elliott 
Senior Vice President of Finance
(337) 233-1307
eric.elliott@lhcgroup.com 

 

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