Lincare Holdings Inc. Announces Fourth Quarter and Year Ended 2010 Financial Results

CLEARWATER, Fla., Feb. 7, 2011 (GLOBE NEWSWIRE) -- Lincare Holdings Inc.
(Nasdaq:LNCR) today announced financial results for the fourth quarter and year
ended December 31, 2010.

For the quarter ended December 31, 2010, net revenues were $422.1 million, a
4.0% increase over net revenues of $405.8 million for the fourth quarter of
2009. The Company estimates that the 4.0% increase in net revenues in the fourth
quarter of 2010 was comprised of approximately 8.0% internal and acquisition
growth offset by approximately 4.0% negative impact from $16.0 million of
Medicare payment changes during the fourth quarter of 2010. Net income for the
quarter ended December 31, 2010, was $46.1 million, a 13.4% increase over net
income of $40.6 million for the fourth quarter of 2009. Diluted earnings per
share were $0.48 for the quarter ended December 31, 2010, a 17.6% increase over
diluted earnings per share of $0.41 for the comparable prior year period.

Revenues for the year ended December 31, 2010, were $1.669 billion, a 7.7%
increase over net revenues of $1.550 billion for the comparable period in 2009.
The Company estimates that the 7.7% increase in net revenues for the year ended
December 31, 2010, was comprised of approximately 9.9% internal and acquisition
growth offset by approximately 2.2% negative impact from $34.9 million of
Medicare payment changes in 2010. Net income for the year ended December 31,
2010, was $181.6 million, a 33.4% increase over net income of $136.1 million for
the prior year. Diluted earnings per share were $1.87 for the year ended
December 31, 2010, a 41.1% increase over diluted earnings per share of $1.32 for
the comparable period last year.

John P. Byrnes, Lincare's Chief Executive Officer, said, "We remain committed to
increasing our market leading positions in our core respiratory product lines
and investing in the expansion of our service offerings through organic
investment and selective acquisitions. As the nation's leading provider of
chronic respiratory disease management therapies in the home setting, we serve a
growing population of chronically ill seniors that require our continuous
support throughout the progression of their disease. As a home-based provider of
cost-efficient health care services to our nation's seniors delivered through
our national network of local distribution and sales centers, we offer an
attractive and preferred alternative that can avoid or delay higher-cost acute
and facility-based care."

Lincare generated $360.8 million of cash from operating activities during 2010
and invested $110.2 million in net capital expenditures and $11.4 million in
business acquisitions. During 2010, Lincare repurchased $100.0 million of its
common stock in open market transactions and paid $39.2 million of cash
dividends. As of December 31, 2010, total long-term obligations, including
current installments, were $494.9 million and cash and investments were $204.2
million. Common shares outstanding at December 31, 2010 were 96,270,308.

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 750,000 customers in 48
states through 1,090 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. 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 other 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 operation 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.

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

---------------------------

December 31, December 31,

2010 2009

---------------------------

Net revenues
$ 422,126 $ 405,800

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Cost and expenses:

Costs of goods and services
114,175 113,417
Operating expenses
100,729 97,477
Selling, general and administrative expenses
85,358 83,229
Bad debt expense
8,443 6,087
Depreciation and amortization expense
28,936 28,767

---------------------------
Operating income
84,485 76,823

Interest expense, net
9,008 8,706

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Income before income taxes
75,477 68,117

Income taxes
29,406 27,506

---------------------------

Net income
$ 46,071 $ 40,611

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Basic earnings per common share
$ 0.49 $ 0.41

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Diluted earnings per common share
$ 0.48 $ 0.41

===========================

Dividends declared per common share
$ 0.20 $ 0.00

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Weighted average number of common shares outstanding
94,192,007 98,527,607

===========================

Weighted average number of common shares and common share equivalents
outstanding 96,088,643 99,619,817

===========================

For the year ended

---------------------------

December 31, December 31,

2010 2009

---------------------------

Net revenues
$ 1,669,205 $ 1,550,477

---------------------------
Cost and expenses:

Costs of goods and services
453,905 431,291
Operating expenses
399,393 389,759
Selling, general and administrative expenses
333,094 330,589
Bad debt expense
31,849 23,257
Depreciation and amortization expense
116,783 118,120

---------------------------
Operating income
334,181 257,461

Interest expense, net
35,688 34,074

---------------------------

Income before income taxes
298,493 223,387

Income taxes
116,919 87,291

---------------------------

Net income
$ 181,574 $ 136,096

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Basic earnings per common share
$ 1.91 $ 1.33

===========================

Diluted earnings per common share
$ 1.87 $ 1.32

===========================

Dividends declared per common share
$ 0.40 $ 0.00

===========================

Weighted average number of common shares outstanding
95,294,614 102,114,275

===========================

Weighted average number of common shares and common share equivalents
outstanding 97,129,998 102,745,920

===========================

LINCARE HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

December 31,
December 31,
2010
2009

---------------------------
ASSETS

Current assets:

Cash and cash equivalents $ 164,203
$ 20,428
Short-term investments 40,000
58,650
Restricted cash 345
0
Accounts receivable, net 186,001
159,542
Income tax receivable 9,443
3,325
Inventories 13,276
13,617
Prepaid and other current assets 3,542
3,742
Deferred income taxes 26,488
25,646

---------------------------
Total current assets 443,298
284,950

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Property and equipment, net 338,778
339,250
Other assets:

Goodwill 1,258,065
1,243,404
Other 7,690
9,590

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Total other assets 1,265,755
1,252,994

---------------------------

Total assets $ 2,047,831 $
1,877,194

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LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Current installments of long-term obligations $ 619
$ 2,767
Accounts payable 64,078
49,959
Accrued expenses:

Compensation and benefits 39,500
42,016
Liability insurance 19,052
19,461
Other current liabilities 51,501
49,264

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Total current liabilities 174,750
163,467

Long-term obligations, net, excluding current installments 494,271
482,104
Deferred income taxes and other taxes 381,061
329,708

---------------------------
Total liabilities 1,050,082
975,279

---------------------------

Commitments and contingencies

Stockholders' equity:

Common stock 963
980
Additional paid-in capital 681,988
632,653
Retained earnings 314,798
268,282

---------------------------
Total stockholders' equity 997,749
901,915

---------------------------

Total liabilities and stockholders' equity $ 2,047,831 $
1,877,194

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CONTACT: Paul G. Gabos
(727) 530-7700