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 LHC Group Reports Fourth Quarter Financial Results
   Wednesday, February 28, 2018 5:25:00 PM ET

LHC Group, Inc. (LHCG ) announced its financial results for the three months and twelve months ended December 31, 2017.

Financial Results for the Fourth Quarter of 2017

-- Net service revenue increased 24.2% to $292.4 million compared with $235.4 million in the fourth quarter of 2016.

-- Net income attributable to LHC Group’s common stockholders was $18.4 million, up 87.8% from $9.8 million in the fourth quarter of 2016, while earnings per diluted share attributable to LHC Group’s common stockholders increased 85.5% to $1.02 per diluted share from $0.55 in the fourth quarter of 2016.

-- Results for the fourth quarter of 2017 include an increase of $0.75 per diluted share for the non-cash decrease in the provision for income taxes from the impact of the Tax Cuts and Jobs Act of 2017 on net deferred tax liabilities, which is partially offset by increases in Almost Family merger and other costs of approximately $0.35 per diluted share(1).



-- Adjusted net income attributable to LHC Group’s common stockholders was $11.2 million, or $0.62 per diluted share, compared with $10.3 million, or $0.58 per diluted share, in the fourth quarter of 2016, for an increase of 6.9%.

-- Total organic growth in home health admissions was 5.3%.

-- Total organic revenue growth in home health was 7.8%.

Financial Results for Fiscal 2017

-- Net service revenue increased 17.2% to $1.07 billion compared with $914.8 million in the prior-year period.

-- Net income attributable to LHC Group’s common stockholders was $50.1 million, up 37.0% from $36.6 million in the prior-year period, while earnings per diluted share attributable to LHC Group’s common stockholders increased 34.8% to $2.79 per diluted share from $2.07 in the prior-year period.

-- Adjusted net income attributable to LHC Group’s common stockholders was $43.5 million, or $2.42 per diluted share(1), compared with $37.0 million, or $2.10 per diluted share(1), in the prior-year period, for an increase of 17.6%.

-- Total organic growth in home health admissions was 10.7%.

-- Total organic revenue growth in home health was 10.0%.

(1) See "Reconciliation of Non-GAAP Measures - Adjusted net income attributable to LHC Group" to GAAP results on page 10.

Operational Highlights

-- LHC Group quality and patient satisfaction results continue to exceed the national average with 98% of its same store locations having CMS Quality Star ratings of four stars or greater.

-- LHC Group acquired 71 home health, hospice or community-based locations and six long-term acute care hospital operations during the twelve months ended December 31, 2017, which produced a record year of $114.4 million in annual revenue prior to acquisition.

-- LHC Group agreed to merge with Almost Family, Inc., which would create one of the largest providers of in-home healthcare in the country. The all-stock merger is expected to accelerate revenue growth by providing additional channels of organic growth and creating a significant pipeline of joint ventures, extensions of existing relationships and acquisitions. A total of $25 million in annualized pre-tax cost synergies have been identified.

Commenting on the results, Keith G. Myers, LHC Group’s chairman and CEO, said, "The growth we generated in the fourth quarter was consistent with our experience throughout 2017 and helped us exceed our full year revenue and earnings goals. As always, this performance is driven by an overriding focus on clinical excellence that delivers quality and patient satisfaction that, according to the CMS Star ratings, continues to lead the home health industry. This was a record-setting year for us with acquisitions and joint ventures, and our ability to improve outcomes remains a critical element in providing value to our partners as we work alongside them to create customized solutions."

Mr. Myers concluded, "We have established a growth plan for 2018 based on strong organic growth and continuation of our partnerships with leading hospitals and health systems. Our expectations for continuing the positive impact within the communities we serve are as high as they have ever been. With much of the regulatory uncertainties in our industry now resolved through recent pronouncements and legislation, we are confident the environment is conducive to executing on new growth opportunities and delivering on the benefits of a record-setting year for acquired revenue."

Almost Family Merger Transaction

On November 15, 2017, LHC Group and Almost Family entered into an agreement providing for a ’merger of equals’ business combination. Following approval by both companies’ shareholders, the merger will be an all-stock transaction with an exchange ratio of 0.9150 of LHC Group shares to be exchanged for each outstanding share of Almost Family stock. The combined company will have an expanded geographic service territory of 36 states covering over 60% of the U.S. population aged 65 and over, 781 locations and 76 joint venture partnerships with health systems that include 336 hospitals. The combined company will operate under the LHC Group name with common shares traded on the NASDAQ under ticker symbol LHCG. On February 22, 2018, the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 with respect to this transaction had expired, satisfying one of the important conditions to closing. The transaction is expected to close at the end of the first quarter following both companies’ March 29, 2018, special shareholder meetings to approve the proposed transaction.

Commenting on the expected merger, Mr. Myers added, "I am pleased with the pace and success of our integration planning work over the last few months as we have prepared for the combination of our two companies. We are confident in our track record of integrating acquisitions and joint ventures successfully, and we began focusing on the important aspects of this integration many months ago. Our integration planning activities began during our comprehensive due diligence efforts conducted prior to signing the merger agreement in November with the assistance of our third party advisor partners at Alston & Bird, FTI Consulting and Ernst & Young. In addition, in November we also engaged the Berkeley Research Group ("BRG") to lead the integration process. BRG will remain engaged for at least a year after the closing to assist in the execution of the actual integration. Since November, BRG has established an integration management office at each of our home office locations in Lafayette and in Louisville. Through those rigorous and dedicated efforts, we’ve been working diligently through 23 separate integration planning workstreams, each with teams comprised of members from LHC Group, Almost Family and BRG, to plan for the integration of systems, processes and personnel.

"With a shared vision for delivering patient-centered care in the home and complementary strengths and cultures, we will be well positioned to lead the evolution of the in-home healthcare industry to value-based reimbursement and highly coordinated care. We look forward to outlining our combined growth expectations later this year."

Fiscal Year 2018 Guidance

Fiscal year 2018 net service revenue is expected to be in a range of $1.22 billion to $1.25 billion, and adjusted earnings per diluted share is expected to be in a range of $3.00 to $3.20. This guidance excludes the impact from a completed merger with Almost Family and assumes the following:

(1) an effective tax rate of 29% to 30%, which reflects the positive impact from passage of the Tax Cuts and Jobs Act of 2017; and (2) the negative impact from the Medicare Home Health Prospective Payment System (PPS) for 2018, which is expected to have an approximate -1% impact, or $6 million reduction to Medicare Home Health revenue and $0.20 reduction in fully diluted earnings per share for 2018.

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, or future legal expenses, if necessary. Due to the difficulty in estimating the costs of the expected merger with Almost Family and its impact on GAAP earnings, the Company is only providing guidance to adjusted earnings for 2018. The Company’s guidance range on net service revenue does not take into account the Company’s adoption of ASU 2014-09 in 2018 regarding revenue recognition, which will result in a reduction to net service revenue by bad debt expense, but will not affect earnings per share.

Conference Call

LHC Group will host a conference call on Thursday, March 1, 2018, at 11:00 a.m. Eastern time to discuss its fourth quarter 2017 results. The toll-free number to call for this interactive teleconference is (866) 393-1608 (international callers should call (973) 890-8327). A telephonic replay of the conference call will be available through midnight on March 8, 2018, by dialing (855) 859-2056 (international callers should call (404) 537-3406) and entering confirmation number 2883586.

A live broadcast 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 an hour following the conclusion of the live broadcast.

About LHC Group, Inc.

LHC Group, Inc. is a national provider of non-acute healthcare services, providing quality, cost-effective healthcare to patients primarily within the comfort and privacy of their home or place of residence. LHC Group provides a comprehensive array of healthcare services through home health, hospice, community-based services agencies and facility-based services. LHC Group operates 320 home health services locations, 92 hospice locations, 12 community-based service locations and 15 long-term acute care hospitals (LTACHs).

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements about the Company’s future financial performance and the strength of the Company’s operations. Such forward-looking statements may be identified by words such as "continue," "expect," and similar expressions. Forward-looking statements involve a number of risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements, including changes in reimbursement, changes in government regulations, changes in LHC Group’s relationships with referral sources, increased competition for LHC Group’s services, increased competition for joint venture and acquisition candidates, changes in the interpretation of government regulations and other risks set forth in Item 1A. Risk Factors in LHC Group’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission. LHC Group undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 
 
 
                                                                                                                                       LHC GROUP, INC. AND SUBSIDIARIES
                                                                                                                                                   CONDENSED
                                                                                                                                          CONSOLIDATED BALANCE SHEETS
                                                                                                                                            (Amounts in thousands,
                                                                                                                                              except share data)
                                                                                                                                                                                                                                                                                           
                                                                                                        Dec. 31,                                  Dec. 31,               
                                                                                                                                                                   2017                                                                                               2016
                                                                                                                                                   ----------------------------------  --------------------                                           ----------------------------------  --------------------
                                                                                                                                                                                                                                                                                           
                                                                                        ASSETS
Current assets:
 Cash                                                                                                                                                                 $          2,849                                                                                   $          3,264
 Receivables:
   Patient accounts receivable, less allowance for uncollectible                                                                                                               161,898                                                                                            124,803
   accounts of $23,556 and $29,036, respectively
   Other receivables                                                                                                                                                             3,163                                                                                              5,115
   Amounts due from governmental entities                                                                                                                       830                                                          942  
                                                                                                                                                   -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
     Total receivables, net                                                                                                                                                    165,891                                                                                            130,860
 Prepaid income taxes                                                                                                                                                            7,006                                                                -
 Prepaid expenses                                                                                                                                                               13,042                                                                                              9,821
 Other current assets                                                                                                                                        12,177                                                        5,796  
                                                                                                                                                   -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
 Total current assets                                                                                                                                                          200,965                                                                                            149,741
Property, building and equipment, net of accumulated depreciation of                                                                                                            46,453                                                                                             43,251
$43,565 and $35,226, respectively
Goodwill                                                                                                                                                                       392,601                                                                                            307,317
Intangible assets, net of accumulated amortization of $13,041 and                                                                                                              134,610                                                                                            102,006
$10,968, respectively
Other assets                                                                                                                                                 19,073                                                       11,756  
                                                                                                                                                   -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
     Total assets                                                                                                                                                     $        793,702                                                                $        614,071  
                                                                                                                                                   ==================== ============== ====================                                           ==================== ============== ====================
                                                                                                                                                                                                                                                                                           
                                                                                                                        LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
 Accounts payable and other accrued liabilities                                                                                                                       $         39,750                                                                                   $         26,805
 Salaries, wages, and benefits payable                                                                                                                                          44,747                                                                                             34,265
 Self-insurance reserve                                                                                                                                                         12,450                                                                                             10,691
 Current portion of long-term debt                                                                                                                                                 286                                                                                                252
 Amounts due to governmental entities                                                                                                                                            5,019                                                                                              4,955
 Income tax payable                                                                                                                                                     --                                                        3,499  
                                                                                                                                                   ----------------------------------  --------------------                                           -------------------- -------------- --------------------
   Total current liabilities                                                                                                                                                   102,252                                                                                             80,467
Deferred income taxes                                                                                                                                                           27,466                                                                                             31,941
Revolving credit facility                                                                                                                                                      144,000                                                                                             87,000
Long-term debt, less current portion                                                                                                                                    --                                                          544  
                                                                                                                                                   ----------------------------------  --------------------                                           -------------------- -------------- --------------------
   Total liabilities                                                                                                                                                           273,718                                                                                            199,952
Noncontrolling interest - redeemable                                                                                                                               13,393                                                                                             12,567
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; 40,000,000 shares authorized;                                                                                                        226                                                                                                224
 22,640,046 and 22,429,041 shares issued in 2017 and 2016,
 respectively
 Treasury stock - 4,890,504 and 4,828,679 shares at cost, respectively                                                                                            (42,249 )                                                                                          (39,135 )
 Additional paid-in capital                                                                                                                                                    126,490                                                                                            119,748
 Retained earnings                                                                                                                                          364,401                                                      314,289  
                                                                                                                                                   -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
   Total LHC Group, Inc. stockholders’ equity                                                                                                       448,868                                                                                            395,126
 Noncontrolling interest - non-redeemable                                                                                                       57,723                                                        6,426  
                                                                                                                                                   -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
   Total equity                                                                                                                                             506,591                                                      401,552  
                                                                                                                                                   -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
     Total liabilities and equity                                                                                                                                     $        793,702                                                                $        614,071  
                                                                                                                                                   ==================== ============== ====================                                           ==================== ============== ====================
 
 
 
                                                                                                                                                                                                                                     LHC GROUP, INC. AND SUBSIDIARIES
                                                                                                                                                                                                                                     CONDENSED
                                                                                                                                                                                                                                     CONSOLIDATED STATEMENTS OF INCOME
                                                                                                                                                                                                                                     (Amounts in
                                                                                                                                                                                                                                     thousands, except share and per share data)
 
                                                                                                                                                                     Three Months Ended                                                                                                                                              Year Ended
                                                                                                                                                                                                                                 December 31,                                                                                                                                                                                      December 31,
                                                                                                                                                           ------------------------------------------------------------------------------------------------------------------------------------------------                                                  ------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                2017                 2016                                                       2017                 2016       
                                                                                                                                                           -------------------- ---------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- -------------- --------------------
Net service revenue                                                                                                                                                           $    292,386                                                                                   $        235,443                                                                                   $  1,072,086                                                                                   $        914,823
Cost of service revenue                                                                                                                                         187,426                                                      144,089                                                  675,810                                                      557,650  
                                                                                                                                                           -------------------- ---------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- -------------- --------------------
Gross margin                                                                                                                                                                       104,960                                                                                             91,354                                                                                        396,276                                                                                            357,173
Provision for bad debts                                                                                                                                                              1,246                                                                                              3,131                                                                                          9,484                                                                                             14,790
General and administrative expenses                                                                                                                                                 89,108                                                                                             69,050                                                                                        310,539                                                                                            270,622
Impairment of intangibles and other                                                                                                                                                  1,430                                                                                     -                                                                                          1,511                                                                                     -
(Gain) Loss on disposal of assets                                                                                                                                    83                                                         (190 )                                                                        60                                                        1,199  
                                                                                                                                                           -------------------- ---------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- -------------- --------------------
Operating income                                                                                                                                                                    13,093                                                                                             19,363                                                                                         74,682                                                                                             70,562
Interest expense                                                                                                                                                                    (1,260 )                                                                                             (768 )                                                                                       (3,876 )                                                                                           (2,936 )
Non-operating income                                                                                                                                                 90                                                          213                                                      524                                                          492  
                                                                                                                                                           -------------------- ---------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- -------------- --------------------
Income before income taxes and                                                                                                                                                      11,923                                                                                             18,808                                                                                         71,330                                                                                             68,118
noncontrolling interest
Income tax expense                                                                                                                                               (9,466 )                                                                         6,676                                                   10,944                                                       22,176  
                                                                                                                                                           -------------------- ---------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- -------------- --------------------
Net income                                                                                                                                                                          21,389                                                                                             12,132                                                                                         60,386                                                                                             45,942
Less net income attributable to                                                                                                                                   2,954                                                        2,315                                                   10,274                                                        9,359  
noncontrolling interests
                                                                                                                                                           -------------------- ---------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- -------------- --------------------
Net income attributable to LHC Group, Inc.’s common stockholders                                                                                   $     18,435                                                                $          9,817                                                                $     50,112                                                                $         36,583  
                                                                                                                                                           ==================== ========== ====================                                           ==================== ============== ====================                                           ==================== ========== ====================                                           ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Earnings per share attributable to LHC Group, Inc.’s common
stockholders:
 Basic                                                                                                                                                                        $       1.04                                                                $           0.56                                                                $       2.83                                                                $           2.08  
                                                                                                                                                           ==================== ========== ====================                                           ==================== ============== ====================                                           ==================== ========== ====================                                           ==================== ============== ====================
 Diluted                                                                                                                                                                      $       1.02                                                                $           0.55                                                                $       2.79                                                                $           2.07  
                                                                                                                                                           ==================== ========== ====================                                           ==================== ============== ====================                                           ==================== ========== ====================                                           ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Weighted average shares outstanding:
 Basic                                                                                                                                                                          17,749,872                                                                                         17,597,190                                                                                     17,715,992                                                                                         17,559,477
 Diluted                                                                                                                                                                        18,043,297                                                                                         17,764,066                                                                                     17,961,018                                                                                         17,682,820
                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                        
                                                                                                                                      LHC GROUP, INC. AND SUBSIDIARIES
                                                                                                                                                  CONDENSED
                                                                                                                                    CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                                                                                                 (Amounts in
                                                                                                                                                 thousands)
                                                                                                                                                                                                                                                                                        
                                                                                                                                                          Year Ended
                                                                                                                                                                                                                  December 31,
                                                                                                                                    ----------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                         2017                         2016          
                                                                                                               -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------
Operating activities:
Net income                                                                                                                                             $               60,386                                                                                   $               45,942
Adjustments to reconcile net income to net cash provided by
operating activities:
   Depreciation and amortization expense                                                                                                                               13,422                                                                                                   12,160
   Provision for bad debts                                                                                                                                              9,484                                                                                                   14,790
   Stock-based compensation expense                                                                                                                                     5,964                                                                                                    4,872
   Deferred income taxes                                                                                                                                               (4,475 )                                                                                                  7,402
   Loss on disposal of assets                                                                                                                                              60                                                                                                    1,199
   Impairment of intangibles and other                                                                                                                                  1,511                                                                                             -
   Changes in operating assets and liabilities, net of acquisitions:
     Receivables                                                                                                                                                      (36,390 )                                                                                                (28,873 )
     Prepaid expenses and other assets                                                                                                                                (26,973 )                                                                                                  1,034
     Prepaid income taxes                                                                                                                                              (7,006 )                                                                                                  1,641
     Accounts payable and accrued expenses                                                                                                                             19,666                                                                                                    9,182
     Income taxes payable                                                                                                                                              (3,499 )                                                                                                     84
Net amounts due to/from governmental entities                                                                                                          176                                                             (1,961 )
                                                                                                                                    -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------
Net cash provided by operating activities                                                                                                                              32,326                                                                                                   67,472
                                                                                                                                                                                                                                                                                        
Investing activities:
Purchases of property, building and equipment                                                                                                                         (10,176 )                                                                                                (16,009 )
Cash paid for acquisitions, primarily goodwill and intangible assets                                                                                                  (64,598 )                                                                                                (23,156 )
Advanced payments on acquisitions                                                                                                                                -                                                                                                  (11,488 )
Other                                                                                                                                                            -                                                                273  
                                                                                                                                    --------------------------------------------------------------                                           -------------------- -------------------- --------------------
Net cash used in investing activities                                                                                                                                 (74,774 )                                                                                                (50,380 )
                                                                                                                                                                                                                                                                                        
Financing activities:
Proceeds from line of credit                                                                                                                                           96,000                                                                                                   38,000
Payments on line of credit                                                                                                                                            (39,000 )                                                                                                (49,000 )
Proceeds from employee stock purchase plan                                                                                                                              1,026                                                                                                      912
Payments on debt                                                                                                                                                         (260 )                                                                                                   (238 )
Noncontrolling interest distributions                                                                                                                                 (11,382 )                                                                                                 (9,413 )
Excess tax benefits from vesting of stock awards                                                                                                                 -                                                                                                    1,303
Withholding taxes paid on stock-based compensation                                                                                                                     (3,114 )                                                                                                 (1.996 )
Purchase of additional controlling interest                                                                                                                            (1,488 )                                                                                           -
Sale of noncontrolling interest                                                                                                                                           251                                                                                                      356
Proceeds from exercise of stock options                                                                                                                          -                                                                109  
                                                                                                                                    --------------------------------------------------------------                                           -------------------- -------------------- --------------------
Net cash provided by (used in) financing activities                                                                                                 42,033                                                            (19,967 )
                                                                                                                                    -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------
Change in cash                                                                                                                                                           (415 )                                                                                                 (2,875 )
Cash at beginning of period                                                                                                                          3,264                                                              6,139  
                                                                                                                                    -------------------- -------------------- --------------------                                           -------------------- -------------------- --------------------
Cash at end of period                                                                                                                                  $                2,849                                                                $                3,264  
                                                                                                                                    ==================== ==================== ====================                                           ==================== ==================== ====================
                                                                                                                                                                                                                                                                                        
Supplemental disclosures of cash flow information:
Interest paid                                                                                                                                          $                3,853                                                                $                3,123  
                                                                                                                                    ==================== ==================== ====================                                           ==================== ==================== ====================
Income taxes paid                                                                                                                                      $               25,199                                                                $               11,533  
                                                                                                                                    ==================== ==================== ====================                                           ==================== ==================== ====================
 
 
 
                                                                                                                                                                                                                                     LHC GROUP, INC. AND SUBSIDIARIES
                                                                                                                                                                                                                                     SEGMENT INFORMATION
                                                                                                                                                                                                                                     (Amounts
                                                                                                                                                                                                                                     in thousands)
                                                                                                                                                                                                                                     (Unaudited)
 
                                                                                                                                                                                                                                                              Three Months Ended December 31, 2017
                                                                                                                         ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                Home                                                 Hospice                                            Community-                                            Facility-                                               Total
                                                                                                                                               Health                                                                                     Services                                                                                     Based                                                                                      Based
                                                                                                                                              Services                                                                                                                                                                               Services                                                                                   Services
                                                                                                                         -----------------------------------------------                                             -----------------------------------------------                                             ----------------------------------------------                                             ----------------------------------------------                                             -----------------------------------------------
Net service revenue                                                                                                                         $ 208,327                                                                                   $  42,948                                                                                   $ 13,102                                                                                   $ 28,009                                                                                   $ 292,386
Cost of service revenue                                                                                                                       129,283                                                                                      28,782                                                                                     10,339                                                                                     19,022                                                                                     187,426
Provision for bad debts                                                                                                                           128                                                                                         517                                                                                        346                                                                                        255                                                                                       1,246
General and administrative expenses                                                                                                            63,854                                                                                      13,061                                                                                      2,984                                                                                      9,209                                                                                      89,108
Impairment of intangibles and other                                                                                                             1,430                                                                                -                                                                               -                                                                               -                                                                                       1,430
(Gain) loss on disposal of assets                                                                                               63                                                     1                                                            -                                                   19                                                    83  
                                                                                                                         -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           ------------------------------------------------                                           -------------------- ------ --------------------                                           -------------------- ------- --------------------
Operating income                                                                                                                               13,569                                                                                         587                                                                                       (567 )                                                                                     (496 )                                                                                    13,093
Interest expense                                                                                                                                 (945 )                                                                                      (189 )                                                                                      (63 )                                                                                      (63 )                                                                                    (1,260 )
Non-operating income (loss)                                                                                                     20                                                    20                                                    1                                                   49                                                    90  
                                                                                                                         -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- ------- --------------------
Income before income taxes and noncontrolling interest                                                                                         12,644                                                                                         418                                                                                       (629 )                                                                                     (510 )                                                                                    11,923
Income tax expense                                                                                                          (7,204 )                                                                 (1,382 )                                                                  (446 )                                                                  (434 )                                                                 (9,466 )
                                                                                                                         -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- ------- --------------------
Net income                                                                                                                                     19,848                                                                                       1,800                                                                                       (183 )                                                                                      (76 )                                                                                    21,389
Less net income attributable to noncontrolling interests                                                                     3,049                                                   210                                                 (104 )                                                                  (201 )                                                                  2,954  
                                                                                                                         -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- ------- --------------------
Net income attributable to                                                                                                                  $  16,799                                                                $   1,590                                                                $    (79 )                                                                                 $    125                                                                $  18,435  
LHC Group, Inc.’s
common stockholders
                                                                                                                         ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ====== ====================                                           ==================== ====== ====================                                           ==================== ======= ====================
Total assets                                                                                                                                $ 534,385                                                                $ 155,230                                                                $ 48,216                                                                $ 55,871                                                                $ 793,702  
                                                                                                                         ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ====== ====================                                           ==================== ====== ====================                                           ==================== ======= ====================
 
 
 
                                                                                                                                                                                                                                                                                                                       Three Months Ended December 31, 2016
                                                                                                                         ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                Home                                                                                       Hospice                                                                                  Community-                                                                                  Facility-                                                                                     Total
                                                                                                                                               Health                                                                                     Services                                                                                     Based                                                                                      Based
                                                                                                                                              Services                                                                                                                                                                               Services                                                                                   Services
                                                                                                                         -----------------------------------------------                                             -----------------------------------------------                                             ----------------------------------------------                                             ----------------------------------------------                                             -----------------------------------------------
Net service revenue                                                                                                                         $ 173,806                                                                                   $  34,898                                                                                   $ 11,067                                                                                   $ 15,672                                                                                   $ 235,443
Cost of service revenue                                                                                                                       104,091                                                                                      21,523                                                                                      7,947                                                                                     10,528                                                                                     144,089
Provision for bad debts                                                                                                                         1,486                                                                                       1,037                                                                                        309                                                                                        299                                                                                       3,131
General and administrative expenses                                                                                                            52,255                                                                                       9,393                                                                                      2,217                                                                                      5,185                                                                                      69,050
Gain (loss) on disposal of assets                                                                                               47                                                     9                                                    2                                                 (248 )                                                                   (190 )
                                                                                                                         -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- ------- --------------------
Operating income                                                                                                                               15,927                                                                                       2,936                                                                                        592                                                                                        (92 )                                                                                    19,363
Interest expense                                                                                                              (576 )                                                                    (85 )                                                                   (38 )                                                                   (69 )                                                                   (768 )
                                                                                                                         -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- ------- --------------------
Non-operating income (loss)                                                                                                    208                                                    (1 )                                                                     1                                                    5                                                   213  
                                                                                                                         -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- ------- --------------------
Income from continuing operations before income taxes and                                                                                      15,559                                                                                       2,850                                                                                        555                                                                                       (156 )                                                                                    18,808
noncontrolling interest
Income tax expense                                                                                                           5,480                                                 1,001                                                  237                                                  (42 )                                                                  6,676  
                                                                                                                         -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- ------- --------------------
Net income                                                                                                                                     10,079                                                                                       1,849                                                                                        318                                                                                       (114 )                                                                                    12,132
Less net income attributable to noncontrolling interests                                                                     1,875                                                   499                                                   (2 )                                                                   (57 )                                                                  2,315  
                                                                                                                         -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- ------- --------------------
Net income attributable to                                                                                                                  $   8,204                                                                $   1,350                                                                $    320                                                                $    (57 )                                                                                 $   9,817  
LHC Group, Inc.’s
common stockholders
                                                                                                                         ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ====== ====================                                           ==================== ====== ====================                                           ==================== ======= ====================
Total assets                                                                                                                                $ 427,782                                                                $ 116,090                                                                $ 33,520                                                                $ 36,679                                                                $ 614,071  
                                                                                                                         ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ====== ====================                                           ==================== ====== ====================                                           ==================== ======= ====================
 
 
 
                                                                                                                                                                                                                                     LHC GROUP, INC. AND SUBSIDIARIES
                                                                                                                                                                                                                                     SEGMENT
                                                                                                                                                                                                                                     INFORMATION (Continued)
                                                                                                                                                                                                                                     (Amounts in thousands)
 
                                                                                                                                                                                                                                                                         Year Ended December 31, 2017
                                                                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                      Home                                                 Hospice                                            Community-                                            Facility-                                                Total
                                                                                                                                                     Health                                                                                     Services                                                                                     Based                                                                                      Based
                                                                                                                                                    Services                                                                                                                                                                               Services                                                                                   Services
                                                                                                                               -----------------------------------------------                                             -----------------------------------------------                                             ----------------------------------------------                                             ----------------------------------------------                                             -------------------------------------------------
Net service revenue                                                                                                                               $ 783,507                                                                                   $ 159,197                                                                                   $ 46,909                                                                                   $ 82,473                                                                                   $ 1,072,086
Cost of service revenue                                                                                                                             482,179                                                                                     103,969                                                                                     35,244                                                                                     54,418                                                                                       675,810
Provision for bad debts                                                                                                                               5,924                                                                                       1,910                                                                                        750                                                                                        900                                                                                         9,484
General and administrative expenses                                                                                                                 229,265                                                                                      45,516                                                                                      9,946                                                                                     25,812                                                                                       310,539
Impairment of intangibles and other                                                                                                                   1,511                                                                                -                                                                               -                                                                               -                                                                                         1,511
(Gain) loss on disposal of assets                                                                                                    101                                                    22                                                            -                                                  (63 )                                                                       60  
                                                                                                                               -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           ------------------------------------------------                                           -------------------- ------ --------------------                                           -------------------- --------- --------------------
Operating income                                                                                                                                     64,527                                                                                       7,780                                                                                        969                                                                                      1,406                                                                                        74,682
Interest expense                                                                                                                                     (2,906 )                                                                                      (582 )                                                                                     (194 )                                                                                     (194 )                                                                                      (3,876 )
Non-operating income                                                                                                                 360                                                    71                                                    3                                                   90                                                     524  
                                                                                                                               -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- --------- --------------------
Income before income taxes and noncontrolling interest                                                                                               61,981                                                                                       7,269                                                                                        778                                                                                      1,301                                                                                        71,330
Income tax expense                                                                                                                 9,509                                                 1,057                                                  156                                                  222                                                  10,944  
                                                                                                                               -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- --------- --------------------
Net income                                                                                                                                           52,472                                                                                       6,212                                                                                        622                                                                                      1,079                                                                                        60,386
Less net income (loss) attributable to noncontrolling interests                                                                    9,102                                                 1,248                                                 (111 )                                                                    35                                                  10,274  
                                                                                                                               -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- --------- --------------------
Net income attributable to                                                                                                                        $  43,370                                                                $   4,964                                                                $    733                                                                $  1,045                                                                $    50,112  
LHC Group, Inc.’s
common stockholders
                                                                                                                               ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ====== ====================                                           ==================== ====== ====================                                           ==================== ========= ====================
Total assets                                                                                                                                      $ 534,385                                                                $ 155,230                                                                $ 48,216                                                                $ 55,871                                                                $   793,702  
                                                                                                                               ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ====== ====================                                           ==================== ====== ====================                                           ==================== ========= ====================
 
 
 
                                                                                                                                                                                                                                                                                                                                  Year Ended December 31, 2016
                                                                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                      Home                                                                                       Hospice                                                                                  Community-                                                                                  Facility-                                                                                      Total
                                                                                                                                                     Health                                                                                     Services                                                                                     Based                                                                                      Based
                                                                                                                                                    Services                                                                                                                                                                               Services                                                                                   Services
                                                                                                                               -----------------------------------------------                                             -----------------------------------------------                                             ----------------------------------------------                                             ----------------------------------------------                                             -------------------------------------------------
Net service revenue                                                                                                                               $ 665,896                                                                                   $ 134,948                                                                                   $ 43,891                                                                                   $ 70,088                                                                                   $   914,823
Cost of service revenue                                                                                                                             398,450                                                                                      83,359                                                                                     32,603                                                                                     43,238                                                                                       557,650
Provision for bad debts                                                                                                                               9,609                                                                                       3,401                                                                                        797                                                                                        983                                                                                        14,790
General and administrative expenses                                                                                                                 203,418                                                                                      37,207                                                                                      8,785                                                                                     21,212                                                                                       270,622
Loss on disposal of assets                                                                                                           857                                                   338                                                   49                                                  (45 )                                                                    1,199  
                                                                                                                               -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- --------- --------------------
Operating income                                                                                                                                     53,562                                                                                      10,643                                                                                      1,657                                                                                      4,700                                                                                        70,562
Interest expense                                                                                                                  (2,216 )                                                                   (317 )                                                                  (144 )                                                                  (259 )                                                                   (2,936 )
                                                                                                                               -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- --------- --------------------
Non-operating income                                                                                                                 422                                                    25                                                   14                                                   31                                                     492  
                                                                                                                               -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- --------- --------------------
Income before income taxes and noncontrolling interest                                                                                               51,768                                                                                      10,351                                                                                      1,527                                                                                      4,472                                                                                        68,118
Income tax expense                                                                                                                16,505                                                 3,485                                                  651                                                1,535                                                  22,176  
                                                                                                                               -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- --------- --------------------
Net income                                                                                                                                           35,263                                                                                       6,866                                                                                        876                                                                                      2,937                                                                                        45,942
Less net income (loss) attributable to noncontrolling interests                                                                    6,876                                                 1,867                                                  (58 )                                                                   674                                                   9,359  
                                                                                                                               -------------------- ------- --------------------                                           -------------------- ------- --------------------                                           -------------------- ------ --------------------                                           -------------------- ------ --------------------                                           -------------------- --------- --------------------
Net income attributable to                                                                                                                        $  28,387                                                                $   4,999                                                                $    934                                                                $  2,263                                                                $    36,583  
LHC Group, Inc.’s
common stockholders
                                                                                                                               ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ====== ====================                                           ==================== ====== ====================                                           ==================== ========= ====================
Total assets                                                                                                                                      $ 427,782                                                                $ 116,090                                                                $ 33,520                                                                $ 36,679                                                                $   614,071  
                                                                                                                               ==================== ======= ====================                                           ==================== ======= ====================                                           ==================== ====== ====================                                           ==================== ====== ====================                                           ==================== ========= ====================
 
 
 
                                                                                                                                                                                                                                   LHC GROUP, INC. AND SUBSIDIARIES
                                                                                                                                                                                                                                     SELECT
                                                                                                                                                                                                                            CONSOLIDATED KEY STATISTICAL AND FINANCIAL DATA
                                                                                                                                                                                                                                     (Unaudited)
 
                                                                                                                                                 Three Months Ended                                                                                                                                                  Year Ended
                                                                                                                                                                                                             December 31,                                                                                                                                                                                          December 31,
                                                                                                                                     ----------------------------------------------------------------------------------------------------------------------------------------------------                                                  ----------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                            2017                   2016                                                         2017                   2016       
                                                                                                                                     -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- -------------- --------------------
Key Data:
Home-Health Services:
Home Health
---------------------------------------------------------------------
 Locations                                                                                                                                                           315                                                                                                281                                                                                                315                                                                                                281
 Acquired                                                                                                                                                              1                                                                                                  3                                                                                                 43                                                                                                 12
 De novo                                                                                                                                                               1                                                                                                  1                                                                                                  3                                                                                                  5
 Divested/Consolidated                                                                                                                                                (9 )                                                                                               (9 )                                                                                              (12 )                                                                                              (16 )
 Total new admissions                                                                                                                                             49,668                                                                                             41,184                                                                                            192,116                                                                                            159,914
 Medicare new admissions                                                                                                                                          30,745                                                                                             26,812                                                                                            120,177                                                                                            105,575
 Average daily census                                                                                                                                             44,362                                                                                             39,407                                                                                             43,107                                                                                             38,587
 Average Medicare daily census                                                                                                                                    29,925                                                                                             28,381                                                                                             29,514                                                                                             28,146
 Medicare completed and billed episodes                                                                                                                           54,493                                                                                             51,040                                                                                            213,255                                                                                            199,235
 Average Medicare case mix for completed and billed Medicare episodes                                                                                               1.11                                                                                               1.09                                                                                               1.10                                                                                               1.06
 Average reimbursement per completed and billed Medicare episodes                                                                                       $          2,867                                                                                   $          2,751                                                                                   $          2,817                                                                                   $          2,690
 Total visits                                                                                                                                                  1,448,351                                                                                          1,192,042                                                                                          5,656,371                                                                                          4,629,695
 Total Medicare visits                                                                                                                                           987,586                                                                                            869,759                                                                                          3,899,678                                                                                          3,396,164
 Average visits per completed and billed Medicare episodes                                                                                                          18.1                                                                                               17.0                                                                                               18.3                                                                                               17.0
 Organic growth:(1)
   Net revenue                                                                                                                                                       7.8 %                                                                                              7.3 %                                                                                             10.0 %                                                                                              6.4 %
   Net Medicare revenue                                                                                                                                              1.8 %                                                                                              5.3 %                                                                                              4.7 %                                                                                              4.7 %
   Total new admissions                                                                                                                                              5.3 %                                                                                             10.8 %                                                                                             10.7 %                                                                                              9.3 %
   Medicare new admissions                                                                                                                                           1.6 %                                                                                              8.5 %                                                                                              5.4 %                                                                                              6.6 %
   Average daily census                                                                                                                                              1.0 %                                                                                              3.5 %                                                                                              4.2 %                                                                                              2.3 %
   Average Medicare daily census                                                                                                                                    -3.8 %                                                                                              0.8 %                                                                                             -1.3 %                                                                                              0.4 %
   Medicare completed and billed episodes                                                                                                                           -2.7 %                                                                                              2.5 %                                                                                              1.1 %                                                                                              2.2 %
                                                                                                                                                                                                                                                                                                                                                                                                                                               
Community-Based Services:
 Locations                                                                                                                                                            12                                                                                                 11                                                                                                 12                                                                                                 11
 Acquired                                                                                                                                                              1                                                                                     -                                                                                                  1                                                                                                  1
 De novo                                                                                                                                                  -                                                                                     -                                                                                     -                                                                                     -
 Divested/Consolidated                                                                                                                                    -                                                                                     -                                                                                     -                                                                                                 (3 )
 Average daily census                                                                                                                                              2,161                                                                                              1,633                                                                                              1,849                                                                                              1,629
 Billable hours                                                                                                                                                  469,963                                                                                            376,934                                                                                          1,644,372                                                                                          1,484,012
 Revenue per billable hour                                                                                                                              $          27.88                                                                                   $          29.36                                                                                   $          28.53                                                                                   $          29.58
                                                                                                                                                                                                                                                                                                                                                                                                                                               
Hospice-Based Services:
 Locations                                                                                                                                                            91                                                                                                 65                                                                                                 91                                                                                                 65
 Acquired                                                                                                                                                 -                                                                                     -                                                                                                 27                                                                                                 10
 De novo                                                                                                                                                  -                                                                                                  1                                                                                                  1                                                                                                  1
 Divested/Consolidated                                                                                                                                    -                                                                                     -                                                                                                 (2 )                                                                                               (2 )
 Admissions                                                                                                                                                        3,655                                                                                              2,448                                                                                             13,369                                                                                              9,988
 Average daily census                                                                                                                                              3,180                                                                                              2,699                                                                                              3,036                                                                                              2,620
 Patient days                                                                                                                                                    292,568                                                                                            248,270                                                                                          1,108,118                                                                                            958,847
 Average revenue per patient day                                                                                                                        $            147                                                                                   $            141                                                                                   $            144                                                                                   $            141
                                                                                                                                                                                                                                                                                                                                                                                                                                               
Facility-Based Services:
Long-term Acute Care
---------------------------------------------------------------------
 Locations                                                                                                                                                            14                                                                                                  8                                                                                                 14                                                                                                  8
 Acquired                                                                                                                                                 -                                                                                     -                                                                                                  6                                                                                     -
 Patient days                                                                                                                                                     21,719                                                                                             13,257                                                                                             63,168                                                                                             56,224
 Average revenue per patient day                                                                                                                        $          1,170                                                                                   $          1,060                                                                                   $          1,152                                                                                   $          1,159
 
(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.
 
 
 
                                                                                                                                                  LHC GROUP, INC. AND SUBSIDIARIES
                                                                                                                                                          RECONCILIATION OF
                                                                                                                                         ADJUSTED NET INCOME ATTRIBUTABLE TO LHC GROUP, INC.
                                                                                                                                                              (Amounts
                                                                                                                                                            in thousands)
                                                                                                                                                             (Unaudited)
 
                                                                                                                                 Three Months Ended                                                                     Twelve Months Ended
                                                                                                                                                                          December 31,                                                                                              December 31,
                                                                                                                                      -------------------------------------------------------------------------------                           -------------------------------------------------------------------------------
                                                                                                                                                             2017                              2016                                                 2017                              2016
                                                                                                                                      --------------------------------------------------                     --------------                     --------------------------------------------------                     --------------
Net income attributable to LHC Group, Inc.’s common stockholders                                                              $  18,435                                                $  9,817                                         $  50,112                                                $ 36,583
Add (net of tax):
 New tax rate(1)                                                                                                                                           (13,602 )                                          -                                           (13,602 )                                          -
 AFAM merger/acquisition expenses(2)                                                                                                                         3,816                                                     451                                             4,299                                                     451
 Closures/relocations(3)                                                                                                                                     2,085                                            -                                             2,214                                            -
 Home Health rule(4)                                                                                                                        481                         -                            481                         -
                                                                                                                                      -------------------- ------- --------------------                      --------------                     -------------------- ------- --------------------                      --------------
Adjusted net income attributable to LHC Group, Inc.’s common                                                                  $  11,215                             $ 10,268                                         $  43,504                             $ 37,034
stockholders
                                                                                                                                      ==================== ======= ====================                      ====== ======                      ==================== ======= ====================                      ====== ======
 
 
                                                                                                                                      RECONCILIATION OF ADJUSTED NET INCOME ATTRIBUTABLE TO LHC
                                                                                                                                                             GROUP, INC.
                                                                                                                                                          PER DILUTED SHARE
                                                                                                                                                             (Unaudited)
 
                                                                                                                                                                       Three Months Ended                                                                                        Twelve Months Ended
                                                                                                                                                                          December 31,                                                                                              December 31,
                                                                                                                                      -------------------------------------------------------------------------------                           -------------------------------------------------------------------------------
                                                                                                                                                             2017                                                 2016                                                 2017                                                 2016
                                                                                                                                      --------------------------------------------------                     --------------                     --------------------------------------------------                     --------------
Net income attributable to LHC Group, Inc.’s common stockholders                                                              $    1.02                                                $   0.55                                         $    2.79                                                $   2.07
Add (net of tax):
 New tax rate(1)                                                                                                                                             (0.75 )                                          -                                             (0.76 )                                          -
 AFAM merger/acquisition expenses(2)                                                                                                                          0.21                                                    0.03                                              0.24                                                    0.03
 Closures/relocations(3)                                                                                                                                      0.11                                            -                                              0.12                                            -
 Home Health rule(4)                                                                                                                       0.03                         -                           0.03                         -
                                                                                                                                      -------------------- ------- --------------------                      --------------                     -------------------- ------- --------------------                      --------------
Adjusted net income attributable to LHC Group, Inc.’s common                                                                  $    0.62                             $   0.58                                         $    2.42                             $   2.10
stockholders
                                                                                                                                      ==================== ======= ====================                      ====== ======                      ==================== ======= ====================                      ====== ======
 
(1) The passage of the Tax Cuts and Jobs Act of 2017
reduced the deferred tax liability by $13.6 million.
(2) Expenses associated with the pending merger between
LHC Group and Almost Family and other prior acquisitions and joint
ventures.
(3) Expenses associated with the closure, relocation or
consolidation of nine home health agencies. This cost includes the
$1.4 million impairment of intangibles charge.
(4) Impact on 2017 episodes, which ended on or after
January 1, 2018, from the Medicare Home Health Prospective Payment
System (PPS) for 2018, which was finalized on November 5, 2017.
 
 

We have included certain financial measures in this press release, including adjusted net income attributable to LHC Group and adjusted net income attributable to LHC Group per diluted share, which are "non-GAAP financial measures" as defined under the rules and regulations promulgated by the SEC. We define adjusted net income attributable to LHC Group as net income attributable to LHC Group adjusted for the after-tax impact of the tax benefit related to tax reform, AFAM merger/acquisition costs, various adjustments, closures/relocations and the Home Health rule. We define adjusted net income attributable to LHC Group per diluted share as net income attributable to LHC Group adjusted for the after-tax impact of the tax benefit related to tax reform, AFAM merger/acquisition costs, various adjustments, closures/relocations and the Home Health rule divided by weighted average diluted shares outstanding.

Adjusted net income attributable to LHC Group and adjusted net income attributable to LHC Group per diluted share are supplemental measures of our performance and are not required by, or presented in accordance with, generally accepted accounting principles in the United States ("GAAP"). Adjusted net income attributable to LHC Group and adjusted net income attributable to LHC Group per diluted share are not measures of our financial performance under GAAP and should not be considered as alternatives to net income attributable to LHC Group, net income attributable to LHC Group per diluted share or any other performance measures derived in accordance with GAAP. Our measurements of adjusted net income attributable to LHC Group and adjusted net income attributable to LHC Group per diluted share may not be comparable to similarly titled measures of other companies. We have included information concerning adjusted net income attributable to LHC Group and adjusted net income attributable to LHC Group per diluted share in this press release because we believe that such information is used by certain investors as measures of a company’s historical performance. We believe these measures are frequently used by securities analysts, investors and other interested parties in the evaluation of issuers of equity securities, many of which present adjusted net income and adjusted net income per diluted share when reporting their results. Our presentation of adjusted net income attributable to LHC Group and adjusted net income attributable to LHC Group per diluted share should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20180228006584r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20180228006584/en/

SOURCE: LHC Group, Inc.

LHC Group, Inc. 
Eric Elliott, 337-233-1307 
Senior Vice President of Finance 
eric.elliott@lhcgroup.com


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