Revenue during the quarter grew 7.51 percent to $235.44 million from $218.99 million in the previous year period. Gross margin for the quarter contracted 232 basis points over the previous year period to 38.80 percent. Total expenses were 91.78 percent of quarterly revenues, down from 92.44 percent for the same period last year. This has led to an improvement of 67 basis points in operating margin to 8.22 percent.

Operating income for the quarter was $19.36 million, compared with $16.55 million in the previous year period.

Commenting on the announcement, Keith G. Myers, LHC Group’s chairman and Chief executive officer, said, “We are pleased with our fourth-quarter financial results and with the operating momentum we built throughout 2016. A continuation of favorable admission trends drove double-digit growth in both total admissions and organic home health admissions for the second consecutive quarter. In addition, the acuity of our home health admissions further increased resulting in a 4.7% rise in average Medicare reimbursement. Reflecting the strength of these increases, our home health organic revenue increased 7.3% for the fourth quarter and 6.4% for the full year.

For fiscal year 2017, LHC Group, Inc expects revenue to be in the range of $1,000 million to $1,030 million and its diluted earnings per share to be in the range of $2.07 to $2.23.

The company has spent $50.38 million cash to meet investing activities during the year as against cash outgo of $83.86 million in the last year.

The company has spent $19.97 million cash to carry out financing activities during the year as against cash inflow of $29.53 million in the last year period.

Cash and cash equivalents stood at $3.26 million as on Dec. 31, 2016, down 46.83 percent or $2.88 million from $6.14 million on Dec. 31, 2015.

Working capital remains almost stable
LHC Group, Inc has recorded an increase in the working capital over the last year. It stood at $69.27 million as at Dec. 31, 2016, up 0.89 percent or $0.61 million from $68.66 million on Dec. 31, 2015. Current ratio was at 1.86 as on Dec. 31, 2016, down from 1.98 on Dec. 31, 2015.

Days sales outstanding went up to 26 days for the quarter compared with 24 days for the same period last year.

Debt comes down
LHC Group, Inc has recorded a decline in total debt over the last one year. It stood at $87.80 million as on Dec. 31, 2016, down 11.12 percent or $10.99 million from $98.78 million on Dec. 31, 2015. Total debt was 14.30 percent of total assets as on Dec. 31, 2016, compared with 17.45 percent on Dec. 31, 2015. Debt to equity ratio was at 0.22 as on Dec. 31, 2016, down from 0.28 as on Dec. 31, 2015. Interest coverage ratio improved to 25.21 for the quarter from 21.52 for the same period last year.