LAFAYETTE, La., May 4, 2022
/PRNewswire/ -- LHC Group, Inc. (NASDAQ: LHCG) announced its
financial results for the quarter ended March 31, 2022.
First Quarter 2022 Financial Results
- Net service revenue increased 8.9% to $571.5 million.
- Adjusted net revenue was $575.5
million
- Net income attributable to LHC Group's common stockholders was
$19.5 million, or $0.64 per diluted share.
- Adjusted net income attributable to LHC Group's common
stockholders was $33.4 million, or
$1.09 adjusted earnings per diluted
share.
- Adjusted EBITDA was $54.5
million.
A reconciliation of all non-GAAP financial results in this release
appears on pages 9-10.
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.
- Home Health quality star ratings continue to improve from 4.12
in the January 2022 release to 4.20
in April 2022 release and to 4.25 in
the CMS July 2022 preview.
- Organic growth in total home health admissions increased 1.6%
in the first quarter of 2022 compared with the same period in
2021.
- Organic growth in hospice admissions increased 4.0% in the
first quarter of 2022 compared with the same period in 2021.
- On May 3, 2022, LHC Group
announced that it has finalized a joint venture partnership for
in-home services with Archbold Medical Center in Thomasville, Georgia.
The Company has posted supplemental financial information on the
first quarter results, which can be found under Financial Results
on the Company's Investor Relations page. 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 first 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 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 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 preliminary proxy statement filed by the Company with the SEC
on April 29, 2021. 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)
|
|
|
March 31,
2022
|
|
December 31,
2021
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash
|
$
7,680
|
|
$
9,809
|
|
Receivables:
|
|
|
|
|
Patient accounts
receivable
|
376,968
|
|
348,820
|
|
Other receivables
|
11,219
|
|
13,780
|
|
Total
receivables
|
388,187
|
|
362,600
|
|
Prepaid taxes
|
13,195
|
|
—
|
|
Prepaid income taxes
|
19,004
|
|
7,531
|
|
Prepaid expenses
|
22,636
|
|
28,401
|
|
Other current assets
|
34,538
|
|
24,801
|
|
Total current
assets
|
485,240
|
|
433,142
|
|
Property, building and
equipment, net of accumulated depreciation of $101,643 and $98,394,
respectively
|
156,673
|
|
153,959
|
|
Goodwill
|
1,747,504
|
|
1,748,426
|
|
Intangible assets, net
of accumulated amortization of $20,772 and $19,152,
respectively
|
397,973
|
|
400,002
|
|
Operating lease right
of use asset
|
111,954
|
|
113,399
|
|
Other assets
|
44,196
|
|
46,693
|
|
Total assets
|
$
2,943,540
|
|
$
2,895,621
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts payable and other accrued liabilities
|
$
103,151
|
|
$
98,118
|
|
Salaries, wages, and benefits payable
|
86,049
|
|
100,532
|
|
Self-insurance reserves
|
41,331
|
|
33,784
|
|
Contract liabilities - deferred revenue
|
43,922
|
|
106,489
|
|
Current operating lease payable
|
37,633
|
|
37,630
|
|
Amounts due to governmental entities
|
4,475
|
|
5,447
|
|
Current liabilities - deferred employer payroll
tax
|
26,790
|
|
26,790
|
|
Total current
liabilities
|
343,351
|
|
408,790
|
|
Deferred income
taxes
|
76,749
|
|
70,026
|
|
Income taxes
payable
|
7,537
|
|
7,320
|
|
Revolving credit
facility
|
773,270
|
|
661,197
|
|
Long-term operating
lease liabilities
|
77,287
|
|
78,688
|
|
Total
liabilities
|
1,278,194
|
|
1,226,021
|
|
Noncontrolling interest
— redeemable
|
17,539
|
|
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; 36,687,528 and 36,549,524
shares issued,
and 30,558,774 and 30,634,414 shares outstanding,
respectively
|
367
|
|
365
|
|
Treasury stock —
6,128,754 and 5,915,110 shares at cost,
respectively
|
(193,470)
|
|
(164,790)
|
|
Additional paid-in
capital
|
984,784
|
|
979,642
|
|
Retained earnings
|
770,479
|
|
751,025
|
|
Total LHC Group, Inc.
stockholders' equity
|
1,562,160
|
|
1,566,242
|
|
Noncontrolling interest
— non-redeemable
|
85,647
|
|
85,857
|
|
Total stockholders'
equity
|
1,647,807
|
|
1,652,099
|
|
Total liabilities and
stockholders' equity
|
$
2,943,540
|
|
$
2,895,621
|
|
LHC GROUP, INC. AND
SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
|
(Amounts in
thousands, except per share data)
|
|
(Unaudited)
|
|
|
Three Months Ended
March
31,
|
|
2022
|
|
2021
|
|
Net service
revenue
|
$
571,495
|
|
$
524,835
|
|
Cost of service revenue
(excluding depreciation and amortization)
|
350,388
|
|
310,272
|
|
Gross margin
|
221,107
|
|
214,563
|
|
General and
administrative expenses
|
184,359
|
|
163,249
|
|
Impairment of
intangibles and other
|
1,229
|
|
177
|
|
Operating
income
|
35,519
|
|
51,137
|
|
Interest
expense
|
(4,171)
|
|
(263)
|
|
Income before income
taxes and noncontrolling interest
|
31,348
|
|
50,874
|
|
Income tax
expense
|
6,369
|
|
9,441
|
|
Net income
|
24,979
|
|
41,433
|
|
Less net income attributable to noncontrolling
interests
|
5,525
|
|
6,774
|
|
Net income attributable
to LHC Group, Inc.'s common stockholders
|
$
19,454
|
|
$
34,659
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
Basic
|
$
0.64
|
|
$
1.11
|
|
Diluted
|
$
0.64
|
|
$
1.10
|
|
Weighted average shares
outstanding:
|
|
|
|
|
Basic
|
30,478
|
|
31,165
|
|
Diluted
|
30,603
|
|
31,432
|
|
LHC GROUP, INC.
AND SUBSIDIARIES
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Amounts in
thousands)
|
|
(Unaudited)
|
|
|
Three Months Ended
March 31,
|
|
2022
|
|
2021
|
|
Operating activities:
|
|
|
|
|
Net
income
|
$
24,979
|
|
$
41,433
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
Depreciation and amortization
expense
|
5,617
|
|
4,999
|
|
Amortization of operating lease
right of use asset
|
10,128
|
|
8,918
|
|
Stock-based compensation
expense
|
4,376
|
|
3,513
|
|
Deferred income
taxes
|
6,723
|
|
7,717
|
|
Loss on disposal of
assets
|
155
|
|
31
|
|
Impairment of intangibles and
other
|
1,229
|
|
177
|
|
Changes in operating assets and liabilities, net of
acquisitions:
|
|
|
|
|
Receivables
|
(25,538)
|
|
(28,805)
|
|
Prepaid expenses
|
5,765
|
|
(3,980)
|
|
Other assets
|
(7,192)
|
|
1,627
|
|
Prepaid income taxes
|
(11,473)
|
|
—
|
|
Prepaid taxes
|
(13,195)
|
|
—
|
|
Accounts payable and accrued
expenses
|
10,602
|
|
(2,894)
|
|
Salaries, wages, and benefits
payable
|
(6,936)
|
|
20,451
|
|
Contract liabilities - deferred
revenue
|
(62,567)
|
|
—
|
|
Operating lease
liabilities
|
(10,046)
|
|
(8,925)
|
|
Income taxes payable
|
217
|
|
1,119
|
|
Net amounts due to/from
governmental entities
|
2,200
|
|
(575)
|
|
Net cash (used in) provided by operating
activities
|
(64,956)
|
|
44,806
|
|
Investing activities:
|
|
|
|
|
Purchases of property, building and equipment
|
(6,442)
|
|
(4,849)
|
|
Proceeds from sale of property, building and
equipment
|
—
|
|
45
|
|
Proceeds from sale of an entity
|
—
|
|
200
|
|
Minority interest investments
|
(100)
|
|
—
|
|
Net cash used in investing
activities
|
(6,542)
|
|
(4,604)
|
|
Financing activities:
|
|
|
|
|
Proceeds from line of credit
|
374,428
|
|
—
|
|
Payments on line of credit
|
(262,355)
|
|
(20,000)
|
|
Proceeds from employee stock purchase plan
|
698
|
|
649
|
|
Payments on repurchasing common stock
|
(34,565)
|
|
—
|
|
Noncontrolling interest distributions
|
(5,697)
|
|
(5,704)
|
|
Withholding taxes paid on stock-based compensation
|
(3,140)
|
|
(9,541)
|
|
Purchase of additional controlling interest
|
—
|
|
(142)
|
|
Sale of noncontrolling interest
|
—
|
|
284
|
|
Net cash provided by (used in) financing
activities
|
69,369
|
|
(34,454)
|
|
Change in
cash
|
(2,129)
|
|
5,748
|
|
Cash at beginning of period
|
9,809
|
|
286,569
|
|
Cash at end of period
|
$
7,680
|
|
$ 292,317
|
|
|
|
|
|
Non-Cash Financing Activity:
|
|
|
|
|
Supplemental disclosures of cash flow
information:
|
|
|
|
|
Interest
paid
|
$
3,519
|
|
$
495
|
|
Income taxes
paid
|
$
10,944
|
|
$
621
|
|
Non-Cash Operating Activity:
|
|
|
|
|
Operating right of use
assets in exchange for lease obligations
|
$
9,371
|
|
$
11,748
|
|
Reduction to right of
use assets and liabilities
|
$
(688)
|
|
$
—
|
|
Non-Cash Investing Activity:
|
|
|
|
|
Net working capital
adjustment
|
$
(102)
|
|
$
—
|
|
Accrued capital
expenditures
|
$
372
|
|
$
1,973
|
|
LHC GROUP, INC.
AND SUBSIDIARIES
|
|
SEGMENT
INFORMATION
|
|
(Amounts in
thousands)
|
|
(Unaudited)
|
|
|
Three Months Ended
March 31, 2022
|
|
Home health
services
|
|
Hospice
services
|
|
Home and
community-
based
services
|
|
Facility-
based
services
|
|
HCI
|
|
Total
|
|
Net service
revenue
|
$ 387,892
|
|
$
101,906
|
|
$
44,340
|
|
$ 32,139
|
|
$ 5,218
|
|
$ 571,495
|
|
Cost of service revenue
(excluding depreciation and amortization)
|
228,207
|
|
66,065
|
|
28,955
|
|
24,205
|
|
2,956
|
|
350,388
|
|
General and
administrative expenses
|
126,807
|
|
31,345
|
|
11,418
|
|
11,428
|
|
3,361
|
|
184,359
|
|
Impairment of
intangibles and other
|
449
|
|
726
|
|
54
|
|
—
|
|
—
|
|
1,229
|
|
Operating income
(loss)
|
32,429
|
|
3,770
|
|
3,913
|
|
(3,494)
|
|
(1,099)
|
|
35,519
|
|
Interest
expense
|
(2,970)
|
|
(498)
|
|
(413)
|
|
(208)
|
|
(82)
|
|
(4,171)
|
|
Income (loss) before
income taxes and noncontrolling interest
|
29,459
|
|
3,272
|
|
3,500
|
|
(3,702)
|
|
(1,181)
|
|
31,348
|
|
Income tax expense
(benefit)
|
4,769
|
|
596
|
|
2,258
|
|
(962)
|
|
(292)
|
|
6,369
|
|
Net income
(loss)
|
24,690
|
|
2,676
|
|
1,242
|
|
(2,740)
|
|
(889)
|
|
24,979
|
|
Less net income (loss)
attributable to noncontrolling interests
|
4,596
|
|
680
|
|
85
|
|
171
|
|
(7)
|
|
5,525
|
|
Net income (loss)
attributable to LHC Group, Inc.'s common stockholder
|
$
20,094
|
|
$
1,996
|
|
$ 1,157
|
|
$ (2,911)
|
|
$
(882)
|
|
$
19,454
|
|
Total assets
|
$
1,756,250
|
|
$
803,004
|
|
$
240,195
|
|
$ 80,831
|
|
$
63,260
|
|
$
2,943,540
|
|
LHC GROUP, INC.
AND SUBSIDIARIES
|
|
SEGMENT
INFORMATION
|
|
(Amounts in
thousands)
|
|
(Unaudited)
|
|
|
Three Months Ended
March 31, 2021
|
|
Home health
services
|
|
Hospice
services
|
|
Home and
community-
based
services
|
|
Facility-
based
services
|
|
HCI
|
|
Total
|
|
Net service
revenue
|
$ 373,828
|
|
$ 62,734
|
|
$ 49,125
|
|
$ 33,369
|
|
$
5,779
|
|
$
524,835
|
|
Cost of service revenue
(excluding depreciation and amortization)
|
212,373
|
|
38,570
|
|
34,872
|
|
21,175
|
|
3,282
|
|
310,272
|
|
General and
administrative expenses
|
119,397
|
|
18,127
|
|
11,529
|
|
11,257
|
|
2,939
|
|
163,249
|
|
Impairment of
intangibles and other
|
177
|
|
—
|
|
—
|
|
—
|
|
—
|
|
177
|
|
Operating income
(loss)
|
41,881
|
|
6,037
|
|
2,724
|
|
937
|
|
(442)
|
|
51,137
|
|
Interest
expense
|
(182)
|
|
(36)
|
|
(24)
|
|
(14)
|
|
(7)
|
|
(263)
|
|
Income (loss) before
income taxes and noncontrolling interest
|
41,699
|
|
6,001
|
|
2,700
|
|
923
|
|
(449)
|
|
50,874
|
|
Income tax expense
(benefit)
|
7,890
|
|
1,067
|
|
518
|
|
57
|
|
(91)
|
|
9,441
|
|
Net income
(loss)
|
33,809
|
|
4,934
|
|
2,182
|
|
866
|
|
(358)
|
|
41,433
|
|
Less net income (loss)
attributable to noncontrolling interests
|
4,849
|
|
1,015
|
|
279
|
|
657
|
|
(26)
|
|
6,774
|
|
Net income (loss)
attributable to LHC Group, Inc.'s common stockholders
|
$
28,960
|
|
$
3,919
|
|
$
1,903
|
|
$
209
|
|
$
(332)
|
|
$ 34,659
|
|
Total assets
|
$
1,785,486
|
|
$
308,009
|
|
$
262,538
|
|
$ 97,692
|
|
$ 69,129
|
|
$
2,522,854
|
|
LHC GROUP, INC.
AND SUBSIDIARIES
|
|
SELECT CONSOLIDATED
KEY STATISTICAL AND FINANCIAL DATA
|
|
(Unaudited)
|
|
|
Three Months Ended
March 31,
|
|
Key Data:
|
2022
|
|
2021
|
|
Home Health Services:
|
|
|
|
|
Locations
|
546
|
|
|
531
|
|
|
Total new
admissions
|
113,122
|
|
|
107,922
|
|
|
Episodic new
admissions
|
68,154
|
|
|
67,392
|
|
|
Average daily
census
|
85,347
|
|
|
83,938
|
|
|
Average episodic daily
census
|
53,278
|
|
|
54,597
|
|
|
Completed
episodes
|
100,527
|
|
|
101,736
|
|
|
Average reimbursement
per completed episodes
|
$
|
2,934
|
|
|
$
|
2,856
|
|
|
Total visits
|
2,118,072
|
|
|
2,057,632
|
|
|
Total episodic
visits
|
1,287,101
|
|
|
1,288,653
|
|
|
Average visits per
episodes
|
12.8
|
|
|
12.7
|
|
|
Organic growth:
(1)
|
|
|
|
|
Revenue
|
0.6
|
%
|
|
3.1
|
%
|
|
Episodic
revenue
|
(1.8)
|
%
|
|
1.4
|
%
|
|
Total new
admissions
|
1.6
|
%
|
|
(0.4)
|
%
|
|
Episodic new
admissions
|
(2.4)
|
%
|
|
(4.3)
|
%
|
|
Average daily
census
|
(0.8)
|
%
|
|
10.1
|
%
|
|
Average episodic daily
census
|
(5.0)
|
%
|
|
3.5
|
%
|
|
Completed
episodes
|
(3.2)
|
%
|
|
(0.7)
|
%
|
|
|
|
|
|
Hospice Services:
|
|
|
|
|
Locations
|
169
|
|
|
120
|
|
|
Admissions
|
8,376
|
|
|
5,451
|
|
|
Average daily
census
|
7,065
|
|
|
4,411
|
|
|
Patient days
|
635,821
|
|
|
396,974
|
|
|
Average revenue per
patient day
|
$
|
163.04
|
|
|
$
|
161.88
|
|
|
Organic growth:
(1)
|
|
|
|
|
Total new
admissions
|
4.0
|
%
|
|
7.5
|
%
|
|
|
|
|
|
Home and Community-Based
Services:
|
|
|
|
|
Locations
|
135
|
|
|
129
|
|
|
Average daily
census
|
12,079
|
|
|
13,711
|
|
|
Billable
hours
|
1,673,692
|
|
|
1,901,281
|
|
|
Revenue per billable
hour
|
$
|
27.15
|
|
|
$
|
26.04
|
|
|
|
|
|
|
Facility-Based Services:
|
|
|
|
|
Long-term Acute Care
|
|
|
|
|
Locations
|
12
|
|
|
12
|
|
|
Average revenue per
patient day
|
$
|
1,449
|
|
|
$
|
1,518
|
|
|
Average Daily
Census
|
228
|
|
|
235
|
|
|
|
|
(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.
|
|
RECONCILIATION OF
ADJUSTED NET INCOME ATTRIBUTABLE TO LHC GROUP,
INC.
|
|
(Amounts in
thousands)
|
|
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
2021
|
|
|
Net income attributable
to LHC Group, Inc.'s common stockholders
|
|
$
|
19,454
|
|
|
$
|
34,659
|
|
|
|
Add (net of tax):
|
|
|
|
|
|
|
Acquisition, de novo and legal expenses
(1)
|
|
3,019
|
|
|
—
|
|
|
|
Closures/relocations/consolidations (2)
|
|
2,132
|
|
|
131
|
|
|
|
COVID-19
impact:
|
|
|
|
|
|
|
|
|
PPE, supplies and
wages (3)
|
|
—
|
|
|
8,852
|
|
|
|
ERP implementation (4)
|
|
1,692
|
|
|
—
|
|
|
|
Cost
improvement initiatives (5)
|
|
3,642
|
|
|
—
|
|
|
|
Cost
report and contract settlements (6)
|
|
3,498
|
|
|
—
|
|
|
|
Adjusted net income
attributable to LHC Group, Inc.'s common stockholders
|
|
$
|
33,437
|
|
|
$
|
43,642
|
|
|
|
RECONCILIATION OF
ADJUSTED NET INCOME
|
|
ATTRIBUTABLE
TO LHC GROUP, INC. PER DILUTED SHARE
|
|
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
2021
|
|
|
Net income attributable
to LHC Group, Inc.'s common stockholders
|
|
$
|
0.64
|
|
|
$
|
1.10
|
|
|
|
Add (net of tax):
|
|
|
|
|
|
|
Acquisition and de novo expenses (1)
|
|
0.10
|
|
|
—
|
|
|
|
Closures/relocations/consolidations (2)
|
|
0.07
|
|
|
0.01
|
|
|
|
COVID-19
impact:
|
|
|
|
|
|
|
|
|
PPE, supplies and
wages (3)
|
|
—
|
|
|
0.28
|
|
|
|
ERP implementation (4)
|
|
0.05
|
|
|
—
|
|
|
|
Cost
improvement initiatives (5)
|
|
0.12
|
|
|
—
|
|
|
|
Cost
report and contract settlements (6)
|
|
0.11
|
|
|
—
|
|
|
|
Adjusted net income
attributable to LHC Group, Inc.'s common stockholders
|
|
$
|
1.09
|
|
|
$
|
1.39
|
|
|
|
RECONCILIATION
OF EBITDA AND ADJUSTED EBITDA
|
|
(Amounts in
thousands)
|
|
(Unaudited)
|
|
|
|
Three Months Ended
|
|
|
2022
|
|
2021
|
|
Net income attributable
to LHC Group, Inc.'s common stockholders
|
|
$
|
19,454
|
|
|
$
|
34,659
|
|
|
Add:
|
|
|
|
|
|
Income tax
expense
|
|
6,369
|
|
|
9,441
|
|
|
Interest
expense, net
|
|
4,171
|
|
|
263
|
|
|
Depreciation and amortization
|
|
5,617
|
|
|
4,999
|
|
|
Adjustment
items (*)
|
|
18,904
|
|
|
12,167
|
|
|
Adjusted
EBITDA
|
|
$
|
54,515
|
|
|
$
|
61,529
|
|
|
|
|
|
|
|
|
* Adjustment items (pre-tax):
|
|
|
|
|
|
Acquisition, de novo and legal expenses
(1)
|
|
4,081
|
|
|
—
|
|
|
Closures/relocation/consolidations (2)
|
|
2,882
|
|
|
177
|
|
|
COVID-19 PPE, supplies and other
expenses (3)
|
|
—
|
|
|
11,990
|
|
|
ERP
implementation (4)
|
|
2,287
|
|
|
—
|
|
|
Cost
improvement initiatives (5)
|
|
4,924
|
|
|
—
|
|
|
Cost
report and contract settlements (6)
|
|
4,730
|
|
|
—
|
|
|
Total adjustments
|
|
$
|
18,904
|
|
|
$
|
12,167
|
|
|
|
|
1.
|
Expenses and other
costs associated with recently announced or completed acquisitions,
de novos and the pending acquisition by UnitedHealth Group.
($4.1 million pre-tax in the three months ended March 31,
2022).
|
|
2.
|
Loss on the sale of an
asset and other expenses associated with a closure or
consolidation, including impairment ($2.9 million pre-tax in the
three months ended March 31, 2022); expenses associated with the
impairment on a closed home health location which occurred in the
first quarter of 2021($0.2 million pre-tax in the three months
ended March 31, 2021).
|
|
3.
|
COVID-19 related
expenses for purchases of personal protective equipment (PPE),
supplies and wage adjustments (No adjustments were made in the
three months ended March 31, 2022; $12.0 million pre-tax in the
three months ended March 31, 2021).
|
|
4.
|
Expenses and other
costs associated with the implementation of an Enterprise Resource
Planning software ($2.3 million pre-tax in the three months ended
March 31, 2022).
|
|
5.
|
Expenses associated
with cost improvement initiatives implemented in the first quarter
of 2022, which consisted of contract terminations and general and
administrative cost reductions ($4.9 million pre-tax in the three
months ended March 31, 2022).
|
|
6.
|
Expenses associated
with a 2004 cost report settlement along with other disputed
contract settlements ($4.7 million pre-tax in the three months
ended March 31, 2022).
|
|
Contact:
|
Eric
Elliott
|
|
Senior Vice
President of Finance
|
|
(337)
233-1307
|
|
eric.elliott@lhcgroup.com
|
View original content to download
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SOURCE LHC Group, Inc.
