Lincare Holdings Inc. Announces First Quarter 2011 Financial Results

CLEARWATER, Fla., April 18, 2011 (GLOBE NEWSWIRE) -- Lincare Holdings Inc.
(Nasdaq:LNCR) today announced financial results for the first quarter ended
March 31, 2011.

For the quarter ended March 31, 2011, net revenues were $431.6 million, a 5.2%
increase over net revenues of $410.0 million for the first quarter of 2010. The
Company estimates that the 5.2% increase in net revenues in the first quarter of
2011 was comprised of approximately 9.3% internal and acquisition growth offset
by approximately 4.1% negative impact from $16.7 million of Medicare payment
changes during the first quarter of 2011. Net income for the quarter ended March
31, 2011, was $46.4 million, a 6.3% increase over net income of $43.6 million
for the first quarter of 2010. Diluted earnings per share were $0.49 for the
quarter ended March 31, 2011, an 8.3% increase over diluted earnings per share
of $0.45 for the comparable prior year period.

John P. Byrnes, Lincare's Chief Executive Officer, said, "We are pleased with
Lincare's operating and financial performance in the first quarter of 2011. As
the year progresses, we look forward to building on our market share gains and
driving earnings growth through organic expansion, selective acquisitions and
other strategic opportunities."

Lincare generated $81.3 million of cash from operating activities during the
first quarter of 2011 and invested $24.0 million in net capital expenditures and
$20.6 million in business acquisitions. As of March 31, 2011, total long-term
obligations, including current installments, were $509.2 million and cash and
investments were $173.6 million.

On February 21, 2011, Lincare acquired a specialty pharmacy business with annual
revenues of approximately $82 million.

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 785,000 customers in 48
states through 1,093 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. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)

For the three months
ended
----------------------

March 31, March 31,
2011 2010
---------- ----------

Net revenues $ 431,567 $ 410,040
---------- ----------
Costs and expenses:
Cost of goods and services 124,209 110,926
Operating expenses 101,907 98,527
Selling, general and
administrative expenses 82,879 84,051
Bad debt expense 8,631 6,151
Depreciation and amortization
expense 29,317 29,526
---------- ----------

346,943 329,181
---------- ----------

Operating income 84,624 80,859
---------- ----------

Other income (expense):
Interest income 203 93

Interest expense (9,258) (8,934)
---------- ----------

(9,055) (8,841)
---------- ----------

Income before income taxes 75,569 72,018

Income tax expense 29,192 28,382
---------- ----------

Net income $ 46,377 $ 43,636
========== ==========

Basic - earnings per common
share $ 0.50 $ 0.46
========== ==========

Diluted - earnings per common
share $ 0.49 $ 0.45
========== ==========

Dividends declared per common
share $ 0.20 $ 0.00
========== ==========

Weighted average number of
common
shares outstanding 92,977,984 95,710,461
========== ==========

Weighted average number of
common
shares and common share
equivalents
outstanding 95,465,833 97,307,220
========== ==========

LINCARE HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)

March 31, December 31,
2011 2010
------------ ------------
ASSETS

Current assets:
Cash and cash equivalents $ 133,607 $ 164,203
Short-term investments 40,000 40,000
Restricted cash 0 345
Accounts receivable, net 216,796 186,001
Income tax receivable 0 9,443
Inventories 14,163 13,276
Prepaid and other current
assets 3,467 3,542

Deferred income taxes 27,293 26,488
------------ ------------

Total current assets 435,326 443,298
------------ ------------

Property and equipment,
net 336,153 338,778
Other assets:
Goodwill 1,283,078 1,258,065

Other 18,097 7,690
------------ ------------

Total other assets 1,301,175 1,265,755
------------ ------------

Total assets $ 2,072,654 $ 2,047,831
============ ============

LIABILITIES AND
STOCKHOLDERS' EQUITY

Current liabilities:
Current installments of
long-term obligations $ 8,744 $ 619
Accounts payable 64,536 64,078
Accrued expenses:
Compensation and
benefits 42,498 39,500
Liability insurance 18,097 19,052
Other current liabilities 54,651 51,501

Income taxes payable 5,768 0
------------ ------------
Total current
liabilities 194,294 174,750
------------ ------------

Long-term obligations,
net, excluding current
installments 500,485 494,271
Deferred income taxes and
other taxes 395,448 381,061
------------ ------------

Total liabilities 1,090,227 1,050,082
------------ ------------

Commitments and
contingencies

Stockholders' equity:
Common stock 947 963
Additional paid-in
capital 687,753 681,988

Retained earnings 293,727 314,798
------------ ------------
Total stockholders'
equity 982,427 997,749
------------ ------------

Total liabilities and
stockholders' equity $ 2,072,654 $ 2,047,831
============ ============

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