Higher costs cloud Lincare's first quarter earnings
CLEARWATER, Fla. – Lincare this week reported net income for the quarter ended March 31, 2012, was flat compared to the same period last year, as higher costs offset double-digit growth in net revenues.
The provider reported a net income of $46.4 million for the first quarter this year, about the same amount it reported for the first quarter last year. It reported net revenues of $500.9 million for the first quarter this year, a 16% increase compared to the same period last year.
Lincare credits the increase to 17% internal and acquisition growth offset by about 1% negative impact from $2.2 million in Medicare payment reductions in the first quarter this year. Additionally, cost of goods increased to $163.5 million from $124 million a year ago and operating expenses increased to $115 million from $102 million.
“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,” stated CEO John Byrnes in a release.
Lincare generated $55.8 million of cash from operating activities during the first quarter this year. The provider invested $31 million in net capital expenditures and $12.4 million in business acquisitions.
It repurchased 1.9 million shares of its common stock for $50 million during the first quarter this year. Common shares outstanding on March 31 were 86,356,803. Total long-term obligations, including current installments, as of March 31 were $727 million, and cash and investments were $69.1 million.
Lincare provides services and equipment to more than 800,000 customers in 48 states in the United States and in Canada through 1,091 locations.