|Bid||213.24 x 800|
|Ask||213.58 x 800|
|Day's range||203.93 - 213.88|
|52-week range||100.00 - 213.88|
|Beta (5Y monthly)||N/A|
|PE ratio (TTM)||56.28|
|Earnings date||04 Nov 2020 - 09 Nov 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||202.10|
LHC Group's (LHCG) second-quarter results benefit from strength in hospice services.
LHC (LHCG) delivered earnings and revenue surprises of 64.00% and -1.06%, respectively, for the quarter ended June 2020. Do the numbers hold clues to what lies ahead for the stock?
Reinstates 2020 guidanceLAFAYETTE, La., Aug. 05, 2020 (GLOBE NEWSWIRE) -- LHC Group, Inc. (NASDAQ: LHCG) announced its financial results for the quarter ended June 30, 2020. Unless otherwise noted, all results are compared with the second quarter ended June 30, 2019.Second Quarter 2020 Financial Results * Net service revenue decreased 5.9% to $487.3 million due to the impact of the COVID-19 pandemic. * Net income attributable to LHC Group’s common stockholders increased 78.8% to $44.7 million, or $1.43 per diluted share. * Adjusted net income attributable to LHC Group’s common stockholders increased 15.9% to $38.6 million, or $1.23 adjusted earnings per diluted share, compared with $33.3 million, or $1.07 per diluted share, in the same period in 2019. Adjusted results for the second quarter of 2020 exclude a pre-tax amount of $0.6 million in acquisition and de novo related expenses associated with acquisitions completed in late 2019 and in the first half of 2020, $0.7 million related to a loss on the sale of an asset and closure related expenses, $27.3 million in COVID-19 related costs and expenses for purchases of personal protective equipment (PPE), supplies, employee related costs and expenses and other categories of costs and expenses incurred in response to the pandemic, and $36.8 million, net of non-controlling interest, in government stimulus income funded by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and distributed through the Provider Relief Fund (PRF). * Adjusted EBITDA increased 8.8% to $57.7 million compared with $53.0 million in the same period in 2019. A reconciliation of all non-GAAP financial results can be found in separate tables at the end of this release. Operational and Strategic Highlights * LHC Group’s quality and patient satisfaction scores continue to exceed the national average and outpace industry peers. * Organic growth in home health admissions declined 4.7% in the second quarter of 2020 compared with the same period in 2019 due to the impact of the COVID-19 pandemic. * Home health organic admissions, when compared with the same periods in 2019, declined 14.3% in April, declined 6.7% in May, increased 7.0% in June and increased 8.5% in July. * Organic growth in hospice admissions was 1.8% in the second quarter of 2020 compared with the same period in 2019. * Hospice organic admissions, when compared with the same periods in 2019, declined 7.2% in April, increased 2.7% in May, increased 10.4% in June and increased 9.7% in July. * On August 1, 2020, LHC Group finalized a joint venture with Orlando Health to enhance home health and home and community based services (HCBS) in the state of Florida. The joint venture includes six total locations – three Orlando Health providers and three LHC Group providers in Orlando, Clermont, Kissimmee, and Altamonte Springs. LHC Group expects incremental annualized revenue from this joint venture of approximately $3.5 million.Commenting on the results, Keith G. Myers, LHC Group’s Chairman and Chief Executive Officer, said, “The courageous work of our employees during these unprecedented times, and their energy, enthusiasm and unwavering desire to care for those in our charge is nothing short of amazing. During the significant disruption over the past several months of this public health emergency, LHC Group has been essential to our hospital and health system partners, referral sources and the patients, families and communities we are privileged to serve. Similar to other challenges the in-home healthcare industry has faced in the past, we know that we are a much stronger organization now as a result of the rigorous protocols and care models in place, rapid adoption of technology, and investments we have made in our employees and personal protective equipment. The governmental support our industry has received through the CARES Act and other measures is very encouraging and complements the ongoing shift to delivering more care to the patient in the safety and comfort of the home.” COVID-19 Update The COVID-19 pandemic had an impact on our operations and financial results for the second quarter of 2020 with a continued impact expected in the second half of 2020, although to a lesser extent than what we have experienced to date. During the quarter, we incurred $27.3 million ($20.2 million net of tax), or $0.64 per diluted share, in additional COVID-19 costs and expenses related to personal protective equipment (PPE), supplies, employee related costs and expenses, including, without limitation, bonuses, increased wages, wage supplements and PTO replenishments for front line caregivers, and other categories of costs and expenses incurred in response to the pandemic.We experienced lower year-over-year patient volumes in the second quarter from our referral sources related to various COVID-19 policies implemented by local, state and federal public health and governmental authorities, a reduction in home visits, and a reduction in elective procedures. As the second quarter progressed, we saw weekly improvement in all of these areas with home health average daily census, admissions and organic growth recovering from their low points the week of April 13, 2020 and steadily improving with average daily census reaching pre-COVID levels by the week of June 1, 2020. Home health average daily census, admissions and organic growth for the month of July also exceeded prior-year levels for July 2019.We continue to invest in creating the safest environment possible for our employees, patients and communities we serve. The robust employee pre-screening, patient and employee protection protocols and other infection control procedures we implemented in March in accordance with Centers for Disease Control recommendations for all 32,000 employees remain in place, and we have also secured adequate par levels of PPE to ensure we are able to continue providing care in the home setting. In addition, we have implemented a number of programs to support our employees, including a special COVID-19 pandemic grant program as part of our 501(c)(3) LHC Group Purpose Fund that supports employees experiencing financial hardships, retirement plan amendments, special cash-in opportunities for accumulated paid time off, expanded offerings in our employee assistance program, a wage supplement program designed to restore certain lost wages for frontline direct patient care-giving employees that qualified, and a PTO replenishment program designed to restore certain hours of paid time off for front line direct patient care-giving employees that qualified and for any employees who previously donated their PTO hours to these front line direct patient caregivers.LHC Group has also implemented a number of cost containment initiatives, including eliminating non-essential travel and expenses along with employee flexing, furloughs, and other measures. We continue to have strong access to capital with over $507.2 million of available liquidity from cash and our revolving credit facility net of the $310.7 million liability associated with the Medicare Accelerated and Advance Payments.During April 2020, we received funds totaling $310.7 million under the Medicare Accelerated and Advance Payment Program as provided for by the CARES Act. The accelerated Medicare payments are interest free and the program currently requires that the Centers for Medicare and Medicaid Services (CMS) recoup the accelerated payments beginning 120 days after receipt by the provider, by withholding future Medicare fee-for service payments for claims until such time as the full accelerated payment has been recouped. The program currently requires Medicare Part A providers to repay the funds within 210 days of receipt. Cash flows from operations for the second quarter of 2020 included $310.7 million of accelerated Medicare payments, all of which remains deferred on the balance sheet at June 30, 2020.Also during April 2020, we received funds totaling $88.7 million related to the Provider Relief Fund as provided for by the CARES Act. We recognized $44.4 million ($27.2 million net of non-controlling interest and tax), or $0.87 per diluted share, in government stimulus income during the second quarter of 2020 related to general distribution funds received from the Provider Relief Fund. Cash flows from operations for the second quarter of 2020 included $44.4 million of Provider Relief Fund distributions, of which $44.3 million remains deferred on the balance sheet at June 30, 2020.COVID-19 Trends Please refer to the supplemental information that can be found under Quarterly Results on the Company’s Investor Relations page to access more detailed statistics on pre-COVID-19 and post-COVID-19 trends.Full Year 2020 Guidance The Company is reinstating full year 2020 guidance after withdrawing it on May 7, 2020, due to the uncertainty around the COVID-19 pandemic. Full year 2020 net service revenue is expected to be in a range of $2.0 billion to $2.05 billion, adjusted earnings per diluted share is expected to be in a range of $4.60 to $4.80, and Adjusted EBITDA, less non-controlling interest, is expected to be in a range of $220 million to $230 million.The Company’s guidance ranges reflect a number of assumptions that are subject to change based on uncertainties related to the impact of the COVID-19 pandemic. The Company’s guidance ranges do not take into account the impact of future reimbursement changes, if any, future acquisitions, if made, de novo locations, if opened, location closures, if any, or future legal expenses, if necessary.Joshua L. Proffitt, LHC Group’s President and Chief Financial Officer, added, “Notwithstanding the headwinds caused by the coronavirus pandemic, we have higher confidence today in the trajectory of our underlying business fundamentals and our positioning for entering 2021 than we did at the beginning of this year. In addition to the weekly improvement in average daily census and admissions since our low point in mid-April, we believe the organic growth and market share gains we have achieved from the gravitation to high quality in-home healthcare providers are clear indications that the future of LHC Group is as bright as ever. For the second consecutive quarter, we have earned over 3,900 new home health referral sources with 3,915 in the first quarter and 3,996 in the second quarter of 2020. By executing on our care model and associated operational strategies under PDGM and strengthening them for the current and potential realities under COVID-19, we are able to maintain our focus on proving our value to all stakeholders today while diligently preparing for an historic consolidation and seismic shift in care delivery to in-home healthcare. I would like to thank all of the clinical professionals and support personnel across the country. You have truly gone above and beyond during these historic times in our country to put others above self and to be an integral part of the solution for our country during this pandemic.”Conference Call LHC Group will host a conference call on Thursday, August 6, 2020, at 10:00 a.m. Eastern time to discuss its second quarter 2020 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 13, 2020, by dialing (855) 859‑2056 (international callers: (404) 537-3406) and entering confirmation number 1070957.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, value-based healthcare to patients primarily within the comfort, safety and privacy 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.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) (Unaudited) June 30, 2020 December 31, 2019 ASSETS Current assets: Cash$172,752 $31,672 Receivables: Patient accounts receivable324,587 284,962 Other receivables10,674 10,832 Total receivables335,261 295,794 Prepaid income taxes6,330 9,652 Prepaid expenses23,740 21,304 Other current assets26,698 21,852 Total current assets564,781 380,274 Property, building and equipment, net of accumulated depreciation of $74,486 and $69,441, respectively123,408 97,908 Goodwill1,234,145 1,219,972 Intangible assets, net of accumulated amortization of $17,070 and $16,431, respectively310,548 305,556 Assets held for sale1,900 2,500 Operating lease right of use asset100,834 95,452 Other assets21,483 38,633 Total assets$2,357,099 $2,140,295 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable and other accrued liabilities$70,138 $83,572 Salaries, wages, and benefits payable86,405 85,631 Self-insurance reserves34,438 31,188 Government stimulus advance44,273 — Contract liabilities – deferred revenue310,712 — Current operating lease liabilities34,838 28,701 Amounts due to governmental entities2,186 1,880 Total current liabilities582,990 230,972 Deferred income taxes70,959 60,498 Income taxes payable6,373 3,867 Revolving credit facility30,000 253,000 Other long term liabilities17,818 — Operating lease payable68,858 69,556 Total liabilities776,998 617,893 Noncontrolling interest — redeemable21,998 15,151 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; 36,327,819 and 36,129,280 shares issued, and 31,121,968 and 30,992,390 shares outstanding, respectively363 361 Treasury stock — 5,205,851 and 5,136,890 shares at cost, respectively(68,654) (60,060) Additional paid-in capital955,119 949,321 Retained earnings590,417 523,701 Total LHC Group, Inc. stockholders’ equity1,477,245 1,413,323 Noncontrolling interest — non-redeemable80,858 93,928 Total stockholders' equity1,558,103 1,507,251 Total liabilities and stockholders' equity$2,357,099 $2,140,295 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, 2020 2019 2020 2019 Net service revenue$487,320 $517,842 $1,000,191 $1,020,427 Cost of service revenue (excluding depreciation and amortization)306,712 325,860 627,914 646,852 Gross margin180,608 191,982 372,277 373,575 General and administrative expenses150,574 148,584 308,440 293,805 Impairment of intangibles and other600 1,018 600 7,337 Government stimulus income(44,435) — (44,435) — Operating income73,869 42,380 107,672 72,433 Interest expense(841) (2,885) (3,609) (5,937) Income before income taxes and noncontrolling interest73,028 39,495 104,063 66,496 Income tax expense15,227 9,557 18,586 13,157 Net income57,801 29,938 85,477 53,339 Less net income attributable to noncontrolling interests13,109 4,938 18,761 9,483 Net income attributable to LHC Group, Inc.’s common stockholders$44,692 $25,000 $66,716 $43,856 Earnings per share: Basic$1.44 $0.81 $2.15 $1.42 Diluted$1.43 $0.80 $2.13 $1.41 Weighted average shares outstanding: Basic31,104 30,960 31,060 30,899 Diluted31,324 31,201 31,301 31,188 LHC GROUP, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) (Unaudited) Six Months Ended June 30, 2020 2019 Operating activities: Net income$85,477 $53,339 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense10,385 8,400 Amortization of operating lease right of use asset17,090 15,528 Stock-based compensation expense6,943 4,392 Deferred income taxes10,461 4,821 Loss on disposal of assets154 312 Impairment of intangibles and other600 7,337 Changes in operating assets and liabilities, net of acquisitions: Receivables(38,186) (22,704) Prepaid expenses(2,436) (332) Other assets(4,169) 8 Prepaid income taxes3,322 5,063 Accounts payable and accrued expenses(16,354) (935) Salaries, wages, and benefits payable3,850 (4,547) Government stimulus advance44,273 — Contract liabilities – deferred revenue310,712 — Other long term liabilities17,818 — Operating lease liabilities(16,876) (13,253) Income taxes payable2,506 374 Net amounts due to/from governmental entities306 528 Net cash provided by operating activities435,876 58,331 Investing activities: Purchases of property, building and equipment(40,944) (7,599) Proceeds from sale of property, building and equipment7,142 — Cash received (paid) for acquisitions3,125 (20,431) Net cash used in investing activities(30,677) (28,030) Financing activities: Proceeds from line of credit256,230 25,000 Payments on line of credit(479,230) (30,000) Proceeds from employee stock purchase plan1,107 931 Payments on debt— (7,650) Noncontrolling interest distributions(10,267) (13,857) Withholding taxes paid on stock-based compensation(8,602) (8,519) Purchase of additional controlling interest(23,575) (18,748) Exercise of vested awards and stock options218 (84) Net cash used in financing activities(264,119) (52,927) Change in cash141,080 (22,626) Cash at beginning of period31,672 49,363 Cash at end of period$172,752 $26,737 Supplemental disclosures of cash flow information: Interest paid$4,083 $4,038 Interest taxes paid$2,375 $4,042 Non-Cash Operating Activity: Operating right of use assets in exchange for lease obligations$18,690 $98,070 Non-Cash Investing Activity: Accrued capital expenditures$2,348 $953 LHC GROUP, INC. AND SUBSIDIARIES SEGMENT INFORMATION (Amounts in thousands) (Unaudited) Three Months Ended June 30, 2020 Home health services Hospice services Home and community-based services Facility-based services HCI Total Net service revenue$339,872 $61,055 $47,675 $33,639 $5,079 $487,320 Cost of service revenue (excluding depreciation and amortization)205,146 37,271 38,747 21,785 3,763 306,712 General and administrative expenses110,209 16,266 11,124 10,165 2,810 150,574 Impairment of intangibles and other— 600 — — — 600 Government stimulus income(35,019) (4,731) (2,865) (1,656) (164) (44,435) Operating income (loss)59,536 11,649 669 3,345 (1,330) 73,869 Interest expense(594) (97) (79) (47) (24) (841) Income (loss) before income taxes and noncontrolling interest58,942 11,552 590 3,298 (1,354) 73,028 Income tax expense (benefit)12,807 2,439 (12) 373 (380) 15,227 Net income (loss)46,135 9,113 602 2,925 (974) 57,801 Less net income (loss) attributable to non controlling interests9,922 2,164 33 997 (7) 13,109 Net income (loss) attributable to LHC Group, Inc.'s common stockholder$36,213 $6,949 $569 $1,928 $(967) $44,692 Total assets$1,656,022 $268,771 $259,742 $101,258 $71,306 $2,357,099 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 (excluding depreciation and amortization)230,545 34,858 39,505 17,572 3,380 325,860 General and administrative expenses108,958 15,096 11,213 9,335 3,982 148,584 Other intangible impairment charge748 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 interest32,979 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 interests3,948 898 (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 LHC GROUP, INC. AND SUBSIDIARIES SEGMENT INFORMATION (Amounts in thousands) (Unaudited) Six Months Ended June 30, 2020 Home health services Hospice services Home and community-based services Facility-based services HCI Total Net service revenue$707,693 $121,586 $96,139 $63,320 $11,453 $1,000,191 Cost of service revenue (excluding depreciation and amortization)425,586 75,305 77,200 42,127 7,696 627,914 General and administrative expenses226,232 32,892 22,583 20,545 6,188 308,440 Impairment of intangibles and other— 600 — — — 600 Government stimulus income(35,019) (4,731) (2,865) (1,656) (164) (44,435) Operating income (loss)90,894 17,520 (779) 2,304 (2,267) 107,672 Interest expense(2,494) (400) (345) (266 ) (104) (3,609 ) Income (loss) before income taxes and noncontrolling interest88,400 17,120 (1,124) 2,038 (2,371) 104,063 Income tax expense (benefit)16,096 3,047 (218) 174 (513) 18,586 Net income (loss)72,304 14,073 (906) 1,864 (1,858) 85,477 Less net income (loss) attributable to non controlling interests14,528 3,131 (122) 1,240 (16) 18,761 Net income (loss) attributable to LHC Group, Inc.'s common stockholder$57,776 $10,942 $(784) $624 $(1,842) $66,716 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 (excluding depreciation and amortization)456,668 68,034 79,360 35,304 7,486 646,852 General and administrative expenses213,797 29,949 22,195 18,512 9,352 293,805 Other intangible impairment charge7,066 271 — — — 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 interest56,596 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 interests7,728 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 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: 2020 2019 2020 2019 Home Health Services: Locations 553 539 553 539 Acquired — 7 6 15 De novo — — — — Divested/consolidated (3) (8) (6) (16) Total new admissions 93,482 95,198 201,664 188,872 Medicare new admissions 50,545 57,391 110,425 114,847 Average daily census 77,530 77,137 77,254 76,407 Average Medicare daily census 44,811 49,827 45,453 49,619 Medicare completed and billed episodes 81,218 93,824 171,445 184,795 Average Medicare case mix for completed and billed Medicare episodes 0.99 1.10 1.02 1.09 Average reimbursement per completed and billed Medicare episodes $2,771 $2,842 $2,785 $2,846 Total visits 1,963,924 2,562,147 4,099,715 5,083,156 Total Medicare visits 1,088,026 1,686,243 2,324,737 3,353,150 Average visits per completed and billed Medicare episodes 13.4 18.0 13.6 18.1 Organic growth: (1) Net revenue (12.7)% 6.6 % (7.7)% 6.8 % Net Medicare revenue (18.6)% 4.7 % (12.6)% 3.2 % Total new admissions (4.7)% 9.1 % 1.1 % 7.4 % Medicare new admissions (14.3)% 1.9 % (8.3)% 1.0 % Average daily census (2.4)% 4.6 % (2.0)% 4.3 % Average Medicare daily census (12.3)% (0.6)% (10.9)% (1.2)% Medicare completed and billed episodes (16.9)% 0.2 % (10.3)% (0.2)% Hospice Services: Locations 112 104 112 104 Acquired — 5 3 6 De novo — — — — Divested/consolidated — (4) (1) (5) Admissions 4,869 4,637 9,929 9,225 Average daily census 4,329 4,070 4,309 3,911 Patient days 398,283 370,407 788,652 707,875 Average revenue per patient day $154.85 $152.44 $154.49 $154.42 Organic growth: (1) Total new admissions 1.8 % 9.6 % 0.9 % 7.9 % Home and Community-Based Services: Locations (2) 111 80 111 80 Acquired — 3 4 3 De novo — — — — Divested/consolidated — (3) — (3) Average daily census 14,333 14,002 14,358 14,033 Billable hours 1,928,860 2,292,719 3,922,603 4,564,613 Revenue per billable hour $25.86 $23.46 $25.55 $23.44 Facility-Based Services: Long-term Acute Care Locations 13 12 13 12 Acquired — — — — Divested/consolidated — — — — Patient days 23,658 19,970 43,819 39,606 Average revenue per patient day $1,385 $1,270 $1,371 $1,278 Average Daily Census 257 219 239 219 1. Organic growth is calculated as the sum of same store plus de novo for the period divided by total from the same period in the prior year. 2. The number of locations for HCBS has been updated to not only include the physical standalone locations but also the locations that are part of a home health provider. RECONCILIATION OF ADJUSTED NET INCOME ATTRIBUTABLE TO LHC GROUP, INC. (Amounts in thousands) (Unaudited) Three Months Ended June 30,Six Months Ended June 30, 2020 2019 2020 2019 Net income attributable to LHC Group, Inc.’s common stockholders $44,692 $25,000 $66,716 $43,856 Add (net of tax): Acquisition and de novo expenses (1) 410 6,713 1,516 11,981 Closures/relocations/consolidations (2) 523 1,537 866 3,781 COVID-19 impact: PPE, supplies and other expenses (3) 20,170 — 22,278 — CARES Act tax benefit (4) — — (2,210 ) — Provider Relief Fund (PRF) (5) (32,882) — (32,882) — NCI associated with PRF (6) 5,643 — 5,643 — Provider moratorium impairment (7) — — — 4,332 Adjusted net income attributable to LHC Group, Inc.’s common stockholders $38,556 $33,250 $61,927 $63,950 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, 2020 2019 2020 2019 Net income attributable to LHC Group, Inc.’s common stockholders $1.43 $0.80 $2.13 $1.41 Add (net of tax): Acquisition and de novo expenses (1) 0.01 0.22 0.05 0.39 Closures/relocations/consolidations (2) 0.02 0.05 0.03 0.12 COVID-19 impact: PPE, supplies and other expenses (3) 0.64 — 0.71 — CARES Act tax benefit (4) — — (0.07) — Provider Relief Fund (PRF) (5) (1.05) — (1.05) — NCI associated with PRF (6) 0.18 — 0.18 — Provider moratorium impairment (7) — — — 0.14 Adjusted net income attributable to LHC Group, Inc.’s common stockholders $1.23 $1.07 $1.98 $2.06 RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (Amounts in thousands) (Unaudited) Three Months Ended June 30,Six Months Ended June 30, 2020 2019 2020 2019 Net income attributable to LHC Group, Inc.’s common stockholders $44,692 $25,000 $66,716 $43,856 Add: Income tax expense 15,227 9,557 18,586 13,157 Interest expense, net 841 2,885 3,609 5,937 Depreciation and amortization 5,252 4,198 10,385 8,400 Adjustment items (1) (8,292) 11,404 (3,436) 27,808 Adjusted EBITDA $57,720 $53,044 $95,860 $99,158 1\. Adjustment items (pre-tax): Acquisition and de novo expenses (1) 554 9,279 2,064 16,574 Closures/relocation/consolidations (2) 706 2,125 1,174 5,234 COVID-19 PPE, supplies and other expenses (3) 27,257 — 30,135 — Provider Relief Fund (PRF) (5) (44,435) — (44,435) — NCI associated with PRF (6) 7,626 — 7,626 — Provider moratorium impairment (7) — — — 6,000 Total adjustments $(8,292) $11,404 $(3,436) $27,808 1. Expenses and other costs associated with recently announced or completed acquisitions and de novos. ($0.5 million pre-tax in the three months ended June 30, 2020 and $2.1 million pre-tax in the six months ended June 30, 2020). 2. Loss on the sale of an asset and other expenses associated with a closure or consolidation ($0.7 million pre-tax in the three months ended June 30, 2020 and $1.2 million pre-tax in the six months ended June 30, 2020). 3. COVID-19 related expenses for purchases of personal protective equipment (PPE), supplies and employee benefit expenses including, without limitation, bonuses and increased wages, wage supplements and PTO replenishments for front line caregivers. ($27.3 million pre-tax in the three months ended June 30, 2020 and $30.1 million pre-tax in the six months ended June 30, 2020). 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. Government stimulus income recognized during the second quarter of 2020 related to general distribution funds received from the Provider Relief Fund ($44.4 million pre-tax in the three months ended June 30, 2020). 6. Non-controlling interest distributed to our Joint Venture partners in association with the Government stimulus income recognized during the second quarter of 2020 ($7.6 million pre-tax in the three months ended June 30, 2020) 7. During the first quarter of 2019, the Company recorded $6.0 million of moratoria fair value 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. In assigning fair value acquired in acquisitions as required by ASC 805, Business Combinations, the Company had assigned fair value to Certificates of need or license moratoria, as applicable, in certain states. Contact: Eric Elliott Senior Vice President of Finance (337) 233-1307 email@example.com