CLEARWATER, Fla., July 19 /PRNewswire/ -- Lincare Holdings Inc. , a leading provider of oxygen and other respiratory therapy services delivered to patients in the home, today announced financial results for the quarter and six months ended June 30, 2004.
For the quarter ended June 30, 2004, revenues were $315.4 million, an 11% increase over revenues of $283.1 million for the second quarter of 2003. The 11% increase in revenues was comprised of 8% internal growth and 3% acquisition growth. Medicare reimbursement reductions for respiratory medications that took effect in 2004 reduced total revenues in the quarter by $13.5 million. Net income for the quarter ended June 30, 2004, was $67.4 million compared to net income of $56.8 million for the second quarter of 2003. Diluted earnings per share were $0.66 for the quarter ended June 30, 2004, an increase of 24% over the $0.53 diluted earnings per share for the comparable period last year.
Revenues for the six-month period ended June 30, 2004, were $622.3 million, a 13.5% increase over revenues of $548.3 million for the comparable period in 2003. The 13.5% increase in revenues was comprised of 8.8% internal growth and 4.7% acquisition growth. The Medicare reimbursement reductions for respiratory medications reduced total revenues in the period by $25.8 million. Net income for the six months ended June 30, 2004, was $130.3 million compared to net income of $109.7 million for the first half of 2003. Diluted earnings per share were $1.28 for the six months ended June 30, 2004, an increase of 25% over the $1.02 diluted earnings per share for the comparable period last year.
During the second quarter of 2004, Lincare completed the acquisition of ten companies with annual revenues of approximately $17.0 million. The acquired businesses were located in Arizona, Connecticut, Florida, Illinois, Massachusetts, Michigan, Minnesota, Missouri, North Carolina, Rhode Island and Texas. Lincare added 18 new operating centers in the second quarter, with four of those locations derived from acquisitions and 14 locations derived from internal expansion. The total number of Lincare locations expanded to 763 at the end of the second quarter.
John P. Byrnes, Lincare’s Chief Executive Officer, said, “We are pleased to report that Lincare achieved strong growth in revenues, earnings and cash flows during the first half of 2004. We continued to open denovo locations in new and contiguous geographic markets, and we are pleased with the quality of our acquisition program this year.” During the first half of 2004, Lincare added 26 new operating centers via internal expansion and acquired 13 companies with annual revenues of approximately $20.0 million.
Mr. Byrnes added, “Our financial position is strong and we achieved significant growth in operating cash flows in the first half of 2004.” Lincare generated $204.1 million of cash from operating activities during the first half of 2004, an increase of 22% over the comparable prior year period. Investments of cash included $47.0 million in capital expenditures and $34.9 million in business acquisition expenditures. Long-term obligations, including current maturities of bank debt, were $370.4 million at June 30, 2004.
Lincare, headquartered in Clearwater, Florida, is one of the nation’s largest providers of oxygen and other respiratory therapy services to patients in the home. The Company provides services and equipment to over 510,000 customers in 47 states.
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 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 operations 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, including its annual report on Form 10-K for the year ended December 31, 2003.
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. Financial Summary (Unaudited) (In thousands, except share and per share data) For the three months ended June 30, June 30, 2004 2003 Net revenues $315,409 $283,132 Costs and expenses: Costs of goods and services 45,583 41,770 Operating expenses 66,500 63,639 Selling, general and administrative expenses 64,118 60,190 Bad debt expense 4,731 4,247 Depreciation expense 21,840 18,095 Amortization expense 381 412 Operating income 112,256 94,779 Other expense 4,363 4,028 Income before income taxes 107,893 90,751 Income taxes 40,514 33,941 Net income $67,379 $56,810 Basic earnings per common share $0.68 $0.55 Diluted earnings per common share $0.66 $0.53 Weighted average number of common shares outstanding 99,435,720 104,200,512 Weighted average number of common shares and common share equivalents outstanding 101,870,206 106,856,771 For the six months ended June 30, June 30, 2004 2003 Net revenues $622,280 $548,305 Costs and expenses: Costs of goods and services 91,435 81,706 Operating expenses 131,305 123,118 Selling, general and administrative expenses 128,654 116,275 Bad debt expense 9,334 8,225 Depreciation expense 43,125 35,370 Amortization expense 758 827 Operating income 217,669 182,784 Other expense 8,761 7,494 Income before income taxes 208,908 175,290 Income taxes 78,596 65,558 Net income $130,312 $109,732 Basic earnings per common share $1.31 $1.05 Diluted earnings per common share $1.28 $1.02 Weighted average number of common shares outstanding 99,236,509 104,507,353 Weighted average number of common shares and common share equivalents outstanding 101,584,761 107,163,124 LINCARE HOLDINGS INC. Selected Balance Sheet Data (Unaudited) (In thousands) June 30, December 31, 2004 2003 Cash $134,970 $9,815 Accounts Receivable, Net 154,684 151,194 Current Assets 298,473 187,090 Total Assets 1,587,218 1,431,660 Current Liabilities 145,966 147,157 Long Term Obligations, including Current Maturities of Bank Debt 370,371 370,817 Stockholders’ Equity 990,462 848,247
Lincare Holdings Inc.
CONTACT: Paul G. Gabos, Lincare Holdings Inc., +1-727-530-7700
Web site: http://www.lincare.com/