Oct. 19, 2009 (PR Newswire) -- CLEARWATER, Fla., Oct. 19 /PRNewswire-FirstCall/ -- Lincare Holdings Inc. (Nasdaq: LNCR) today announced financial results for the three and nine months ended September 30, 2009.
For the quarter ended September 30, 2009, net revenues were $392.6 million, compared with net revenues of $405.7 million for the third quarter of 2008. Net income for the quarter ended September 30, 2009, was $36.0 million, compared with net income of $53.3 million for the third quarter of 2008. Diluted earnings per share were $0.53 for the quarter ended September 30, 2009, compared with $0.73 diluted earnings per share for the comparable prior year period.
Revenues for the nine months ended September 30, 2009, were $1.145 billion, compared with net revenues of $1.249 billion for the comparable period in 2008. Net income for the nine months ended September 30, 2009, was $95.5 million, compared with net income of $171.7 million for the first nine months of 2008. Diluted earnings per share were $1.38 for the nine months ended September 30, 2009, compared with $2.28 diluted earnings per share for the comparable period last year.
The reported results include the following items:
-- The Company's financial results for the three and nine months ended
September 30, 2009 were impacted by dramatic reductions in Medicare
reimbursement for the Company's primary product lines resulting from the
implementation on January 1, 2009 of previously enacted legislation.
The legislation included reductions in Medicare payment amounts of 9.5%
for certain items of durable medical equipment, including oxygen,
additional regulated Medicare price reductions for stationary oxygen
equipment of another 2.3% (for a total reduction of 11.8%) and the
implementation of a new reimbursement methodology for oxygen equipment
from continuous monthly payment for as long as the equipment is in use
by a Medicare beneficiary to a capped rental arrangement whereby payment
for oxygen equipment may not extend beyond a period of continuous use of
36 months. In addition, the results for the first nine months of 2009
reflect lower reimbursement for certain respiratory medications covered
by Medicare. The Company estimates that these changes reduced net
revenues in the three and nine months ended September 30, 2009 by
approximately $62.6 million and $213.5 million, respectively.
John P. Byrnes, Lincare's Chief Executive Officer, said, "We are pleased with Lincare's operating and financial performance in the first nine months of 2009. As our competitors struggle to deal with the severe financial consequences of the Medicare price cuts implemented this year, we continue to focus on meeting the needs of our customers in order to improve their quality of life and to help them manage their disease at home while contributing to improved quality of life and lower overall health care expenditures."
Lincare generated $254.5 million of cash from operating activities during the first nine months of 2009 and invested $84.5 million in net capital expenditures. As of September 30, 2009, total debt outstanding was $477.0 million, cash and investments were $151.3 million and common shares outstanding were 68,036,749.
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 700,000 customers in 48 states through 1,056 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.
