Lincare Holdings Inc. Announces First Quarter 2012 Financial Results

CLEARWATER, Fla., April 16, 2012 (GLOBE NEWSWIRE) -- Lincare Holdings Inc. (Nasdaq:LNCR) today announced financial results for the first quarter ended March 31, 2012.

For the quarter ended March 31, 2012, net revenues were $500.9 million, a 16% increase over net revenues of $431.6 million for the first quarter of 2011. The Company estimates that the 16% increase in net revenues in the first quarter of 2012 was comprised of approximately 17% internal and acquisition growth offset by approximately 1% negative impact from $2.2 million of Medicare payment reductions during the first quarter of 2012.  Net income for the quarter ended March 31, 2012, was $46.4 million compared with net income of $46.4 million for the first quarter of 2011. Diluted earnings per share were $0.54 for the quarter ended March 31, 2012, an 11% increase over diluted earnings per share of $0.49 for the comparable prior year period.

John P. Byrnes, Lincare's Chief Executive Officer, said, "We are pleased with Lincare's operating and financial performance during the first quarter of 2012. We remain focused on building market share in our core respiratory and other ancillary businesses and driving earnings growth through organic expansion, selective acquisitions and other strategic opportunities."

Lincare generated $55.8 million of cash from operating activities during the first quarter of 2012 and invested $31.0 million in net capital expenditures and $12.4 million in business acquisitions. The Company repurchased 1.9 million shares of its common stock for $50.0 million during the first quarter of 2012. Common shares outstanding at March 31, 2012 were 86,356,803. As of March 31, 2012, total long-term obligations, including current installments, were $727.0 million and cash and investments were $69.1 million.

Lincare, headquartered in Clearwater, Florida, is one of the nation's largest providers of respiratory therapy and other services to patients in the home. The Company provides services and equipment to more than 800,000 customers in 48 U.S. states and Canada through 1,091 local centers.

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

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

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

LINCARE HOLDINGS INC. AND SUBSIDIARIES
Financial Summary
(In thousands, except share and per share data)
(Unaudited)
For the three months ended
March 31, March 31,
2012 2011
Net revenues  $ 500,878  $ 431,567
Cost and expenses:
Costs of goods and services 163,529 124,209
Operating expenses 114,982 101,907
Selling, general and administrative expenses 93,396 82,879
Bad debt expense 10,018 8,631
Depreciation and amortization expense 32,552 29,317
 Operating income 86,401 84,624
Interest expense, net  10,210 9,055
 Income before income taxes 76,191 75,569
Income taxes 29,791 29,192
 Net income  $ 46,400  $ 46,377
Basic earnings per common share  $ 0.55  $ 0.50
Diluted earnings per common share  $ 0.54  $ 0.49
Dividends declared per common share  $ 0.20  $ 0.20
Weighted average number of common shares outstanding 83,762,891 92,977,984
Weighted average number of common shares and common share equivalents outstanding 86,172,027 95,465,833
LINCARE HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
March 31, December 31,
2012 2011
ASSETS
Current assets:
Cash and cash equivalents  $ 29,159  $ 15,028
Short-term investments 39,948 39,939
Accounts receivable, net 311,357 254,799
Income tax receivable 0 4,903
Inventories 16,736 17,916
Prepaid and other current assets 9,014 9,609
 Total current assets 406,214 342,194
Property and equipment, net 350,802 350,725
Goodwill 1,402,056 1,389,965
Other 33,438 34,776
 Total assets  $ 2,192,510  $ 2,117,660
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current installments of long-term obligations  $ 463,536  $ 397,132
Accounts payable 49,578 53,294
Accrued expenses:
 Compensation and benefits 23,461 33,142
 Liability insurance 20,227 19,990
Income taxes payable 18,753 0
Other current liabilities 57,815 54,316
Deferred income taxes - current 4,196 8,769
 Total current liabilities 637,566 566,643
Long-term obligations, excluding current installments 263,438 256,778
Deferred income taxes and other taxes 418,686 408,325
 Total liabilities 1,319,690 1,231,746
Commitments and contingencies
Stockholders' equity:
Common stock 864 870
Additional paid-in capital 713,051 707,080
Retained earnings 158,953 177,964
Accumulated other comprehensive gain (loss) (48) 0
 Total stockholders' equity 872,820 885,914
Total liabilities and stockholders' equity  $ 2,192,510  $ 2,117,660 

CONTACT: Paul G. Gabos

         (727) 530-7700
Source: Lincare Holdings Inc.

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