Lincare Holdings Inc. (Nasdaq:LNCR) today announced financial results for the three and six months ended June 30, 2012.

For the quarter ended June 30, 2012, net revenues were $496.2 million, a 10.5% increase over net revenues of $449.0 million for the second quarter of 2011. The Company estimates that the 10.5% increase in net revenues in the second quarter of 2012 was comprised of approximately 11.0% internal and acquisition growth offset by approximately 0.5% negative impact from $2.1 million of Medicare payment reductions during the second quarter of 2012. Net income for the quarter ended June 30, 2012, was $47.9 million compared with net income of $42.8 million for the second quarter of 2011. Diluted earnings per share were $0.56 for the quarter ended June 30, 2012, a 25% increase over diluted earnings per share of $0.45 for the comparable prior year period.

Net revenues for the six months ended June 30, 2012, were $997.0 million, a 13.2% increase over net revenues of $880.6 million for the comparable period in 2011. The Company estimates that the 13.2% increase in net revenues in the first six months of 2012 was comprised of approximately 13.7% internal and acquisition growth offset by approximately 0.5% negative impact from $4.3 million of Medicare payment changes impacting the first six months of this year. Net income for the six months ended June 30, 2012, was $94.3 million compared with net income of $89.1 million for the first half of 2011. Diluted earnings per share were $1.10 for the six months ended June 30, 2012, a 17.8% increase over diluted earnings per share of $0.94 for the comparable period last year.

John P. Byrnes, Lincare's Chief Executive Officer, said, "We are pleased with Lincare's operating and financial performance during the first half of 2012. We continue to focus on those activities that we believe will drive the long-term success of our Company – an emphasis on organic revenue growth driven by our market leading positions in our core respiratory service lines and expansion of our product offerings across our national network of local distribution and sales centers, accompanied by disciplined cost containment and operating efficiencies that maximize our operating cash flows."

Mr. Byrnes added, "We expanded our anti-coagulation monitoring business significantly in the past year, growing the number of patients on service from approximately 10,000 at June 30, 2011 to over 23,000 at June 30, 2012, an increase of 130 percent. We now have five pulmonary rehabilitation centers open and operating, with aggressive plans to expand our footprint within and beyond the two states in which we are currently operating. Our specialty pharmacy business is progressing well, with the anticipated drop-off in respiratory syncytial virus drug sales occurring in the second quarter, consistent with the fall/winter selling cycle for that treatment, which contributed to the increase in our gross margin this quarter compared with the first quarter of 2012. We have made significant progress in executing on our cost savings initiatives, consolidating 50 of our operating centers in the first six months of this year."

Lincare generated $130.1 million of cash from operating activities during the first six months of 2012 and invested $62.2 million in net capital expenditures and $15.9 million in business acquisitions. Common shares outstanding at June 30, 2012 were 86,442,486. As of June 30, 2012, total long-term obligations, including current installments, were $803.8 million and cash and investments were $165.9 million.

Lincare, headquartered in Clearwater, Florida, is one of the nation's largest providers of respiratory therapy and other services to patients in the home. The Company provides services and equipment to more than 800,000 customers in 48 U.S. states and Canada through 1,058 local centers.

Statements in this release concerning future results, performance or expectations are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. All forward-looking statements included in this document are based upon information available to Lincare as of the date hereof and Lincare assumes no obligation to update any such forward-looking statements.   These statements involve known and unknown risks, uncertainties and other factors that may cause Lincare's actual results, levels of activity, performance or achievements to be materially different from any results, levels of activity, performance or achievements expressed or implied by any forward-looking statements.  In some cases, forward-looking statements that involve risks and uncertainties contain terminology such as "may," "will," "should," "could," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue" or variations of these terms or other comparable terminology.

Key factors that have an impact on Lincare's ability to attain any estimates contained in this release include potential reductions in reimbursement rates by government and other third party payors, changes in reimbursement policies, the demand for Lincare's products and services, the availability of appropriate acquisition candidates and Lincare's ability to successfully complete and integrate acquisitions, efficient operation of Lincare's existing and future operating facilities, regulation and/or regulatory action affecting Lincare or its business, economic and competitive conditions, access to borrowed and/or equity capital on favorable terms and other risks described in the filings of Lincare with the Securities and Exchange Commission.

In developing its forward-looking statements, Lincare has made certain assumptions relating to reimbursement rates and policies, internal growth and acquisitions and the outcome of various legal and regulatory proceedings.  If the assumptions used by Lincare differ materially from what actually occurs, then actual results could vary significantly from the performance projected in the forward-looking statements.  Lincare is under no duty to update any of the forward-looking statements after the date of this release.

LINCARE HOLDINGS INC. AND SUBSIDIARIES
Financial Summary
(In thousands, except share and per share data)
(Unaudited)
     
  For the three months ended
  June 30, 2012 June 30, 2011
     
     
     
Net revenues  $ 496,163  $ 449,033
Cost and expenses:    
Costs of goods and services 160,247 142,300
Operating expenses 111,877 102,189
Selling, general and administrative expenses 89,604 85,495
Bad debt expense 12,923 8,981
Depreciation and amortization expense 33,040 29,987
 Operating income 88,472 80,081
     
Interest expense, net  10,362 9,148
     
 Income before income taxes 78,110 70,933
     
Income taxes   30,206 28,168
     
 Net income  $ 47,904  $ 42,765
     
     
Basic earnings per common share  $ 0.58  $ 0.46
     
Diluted earnings per common share  $ 0.56  $ 0.45
     
Dividends declared per common share  $ 0.20  $ 0.20
     
Weighted average number of common shares outstanding 82,806,358 92,096,018
     
Weighted average number of common    
shares and common share equivalents outstanding 85,158,271 94,988,981
     
     
  For the six months ended
  June 30, 2012 June 30, 2011
     
     
     
Net revenues  $ 997,041  $ 880,600
Cost and expenses:    
Costs of goods and services 323,776 266,509
Operating expenses 226,859 204,096
Selling, general and administrative expenses 183,000 168,374
Bad debt expense 22,941 17,612
Depreciation and amortization expense 65,592 59,304
 Operating income 174,873 164,705
     
Interest expense, net  20,572 18,203
     
 Income before income taxes 154,301 146,502
     
Income taxes 59,997 57,360
     
 Net income  $ 94,304  $ 89,142
     
     
Basic earnings per common share  $ 1.13  $ 0.96
     
Diluted earnings per common share  $ 1.10  $ 0.94
     
Dividends declared per common share  $ 0.40  $ 0.40
     
Weighted average number of common shares outstanding 83,284,624 92,534,565
     
Weighted average number of common    
shares and common share equivalents outstanding 85,583,529 95,290,690
 
LINCARE HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
     
  June 30, 2012 December 31, 2011
ASSETS    
     
Current assets:    
Cash and cash equivalents  $ 146,324  $ 15,028
Short-term investments 19,608 39,939
Accounts receivable, net 328,581 254,799
Income tax receivable 2,834 4,903
Inventories 20,539 17,916
Prepaid and other current assets 8,557 9,609
 Total current assets 526,443 342,194
     
Property and equipment, net 352,833 350,725
Goodwill 1,405,895 1,389,965
Other 33,699 34,776
     
 Total assets  $ 2,318,870  $ 2,117,660
     
     
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
Current liabilities:    
Current installments of long-term obligations  $ 307,128  $ 397,132
Accounts payable 68,887 53,294
Accrued expenses:    
 Compensation and benefits 32,459 33,142
 Liability insurance 19,183 19,990
Other current liabilities 53,765 54,316
Deferred income taxes - current 8,972 8,769
 Total current liabilities 490,394 566,643
     
Long-term obligations, excluding current installments 496,705 256,778
Deferred income taxes and other taxes 419,912 408,325
 Total liabilities 1,407,011 1,231,746
     
Commitments and contingencies    
     
Stockholders' equity:    
Common stock 864 870
Additional paid-in capital 721,441 707,080
Retained earnings 189,586 177,964
Accumulated other comprehensive income (loss) (32) 0
 Total stockholders' equity 911,859 885,914
     
 Total liabilities and stockholders' equity  $ 2,318,870  $ 2,117,660 
CONTACT: Paul G. Gabos
         (727) 530-7700
Lincare Holdings Inc. (MM) (NASDAQ:LNCR)
Historical Stock Chart
Von Nov 2024 bis Dez 2024 Click Here for more Lincare Holdings Inc. (MM) Charts.
Lincare Holdings Inc. (MM) (NASDAQ:LNCR)
Historical Stock Chart
Von Dez 2023 bis Dez 2024 Click Here for more Lincare Holdings Inc. (MM) Charts.