EX-99.1 3 dex991.txt PRESS RELEASE EXHIBIT 99.1 Press Release Source: Lincare Holdings Inc. CLEARWATER, Fla., July 21/PRNewswire-FirstCall/ -- Lincare Holdings Inc. (Nasdaq: LNCR - News), continuing to benefit from strong growth in the market ----------- for 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, 2003. For the quarter ended June 30, 2003, revenues were $283.1 million, a 21% increase over revenues of $234.5 million for the second quarter of 2002. Net income for the quarter ended June 30, 2003, was $56.8 million compared to net income of $46.5 million for the second quarter of 2002. Diluted earnings per share were $0.53 for the quarter ended June 30, 2003, an increase of 26% over the $0.42 diluted earnings per share for the comparable period last year. Revenues for the six-month period ended June 30, 2003, were $548.3 million, an 18% increase over revenues of $463.0 million for the comparable period in 2002. Net income for the six months ended June 30, 2003, was $109.7 million compared to net income of $91.7 million for the first half of 2002. Diluted earnings per share were $1.02 for the six months ended June 30, 2003, an increase of 23% over the $0.83 diluted earnings per share for the comparable period last year. During the second quarter of 2003, Lincare completed the acquisition of four companies with annualized revenues of $62.0 million. The acquired businesses were located in Florida, Kentucky, Michigan, New Jersey, New York, Ohio, Pennsylvania, and West Virginia. Lincare added 38 new operating centers in the second quarter, with 24 of those locations derived from acquisitions and 14 locations derived from internal expansion. The total number of Lincare locations expanded to 700 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 2003. Lincare continued to pursue its strategy of opening denovo locations in contiguous and new geographic markets, adding 28 new operating centers via internal expansion during the first half of 2003. We are pleased with the quality of our acquisition program this year, having acquired eight companies with annual revenues of approximately $78.0 million." Lincare generated $167.4 million of cash from operating activities during the first half of this year, an increase of 21% over the same period in 2002. Investments of cash included $49.6 million in capital expenditures, $140.3 million in business acquisition expenditures and $130.7 million in repurchases of the Company's common stock. During the second quarter of 2003, Lincare completed the sale of $275.0 million of 3.0% convertible senior debentures due 2033 and concurrently expanded its share repurchase authorization to $225.0 million. As of June 30, 2003, the Company had repurchased 2.9 million shares of its common stock for $91.4 million under the expanded authorization. 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 455,000 customers in 47 states. Statements contained in this release that are not based on historical facts are forward-looking statements that are based on projections and estimates regarding the economy in general, the health care industry and other factors which impact the Company. These statements involve known and unknown risks, uncertainties and other factors that may cause the Company'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 the Company's ability to attain these estimates include potential reductions in reimbursement rates by government and third party payors, changes in reimbursement policies, the demand for the Company's products and services, the availability of appropriate acquisition candidates and the Company's ability to successfully complete and integrate acquisitions, efficient operations of the Company's existing and future operating facilities, regulation and/or regulatory action affecting the Company or its business, economic and competitive conditions and access to borrowed and/or equity capital on favorable terms. In developing its forward-looking statements, the Company 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 the Company differ materially from what actually occurs, then actual results could vary significantly from the performance projected in the forward-looking statements. The Company 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, 2003 2002 Net revenues $283,132 $234,455 Costs and expenses: Costs of goods & services 41,770 35,426 Operating expenses 63,639 52,537 Selling, general and administrative expenses 60,190 48,975 Bad debt expense 4,247 3,516 Depreciation expense 18,095 15,475 Amortization expense 412 414 Operating income 94,779 78,112 Interest and other expenses 4,028 3,488 Income before income taxes 90,751 74,624 Income taxes 33,941 28,134 Net income $56,810 $46,490 Basic earnings per common share $0.55 $0.43 Diluted earnings per common share $0.53 $0.42 Weighted average number of common shares outstanding 104,200,512 107,411,536 Weighted average number of common shares & common share equivalents outstanding 106,856,771 110,257,529 For the six months ended June 30, June 30, 2003 2002 Net revenues $548,305 $462,976 Costs and expenses: Costs of goods & services 81,706 69,853 Operating expenses 123,118 103,943 Selling, general and administrative expenses 116,275 96,685 Bad debt expense 8,225 6,944 Depreciation expense 35,370 30,335 Amortization expense 827 833 Operating income 182,784 154,383 Interest and other expenses 7,494 7,222 Income before income taxes 175,290 147,161 Income taxes 65,558 55,480 Net income $109,732 $91,681 Basic earnings per common share $1.05 $0.85 Diluted earnings per common share $1.02 $0.83 Weighted average number of common shares outstanding 104,507,353 107,609,223 Weighted average number of common shares & common share equivalents outstanding 107,163,124 110,241,392 LINCARE HOLDINGS INC. Selected Balance Sheet Data (Unaudited) (In thousands) June 30, December 31, 2003 2002 Cash $48,955 $1,581 Accounts Receivable, Net 156,277 142,740 Current Assets 221,516 153,651 Total Assets 1,430,321 1,198,601 Current Liabilities 129,168 110,665 Long Term Obligations, including Current Maturities of Bank Debt 400,701 185,525 Stockholders' Equity 840,575 856,290 ------------------ Source: Lincare Holdings Inc.