Lincare Holdings Inc. Announces Second Quarter and First Half 2011 Financial Results

CLEARWATER, Fla., July 18, 2011 (GLOBE NEWSWIRE) -- Lincare Holdings Inc.
(Nasdaq:LNCR) today announced financial results for the three and six months
ended June 30, 2011.

For the quarter ended June 30, 2011, net revenues were $449.0 million, a 7.3%
increase over net revenues of $418.4 million for the second quarter of 2010. The
Company estimates that the 7.3% increase in net revenues in the second quarter
of 2011 was comprised of approximately 12.3% internal and acquisition growth
offset by approximately 5.0% negative impact from $21.0 million of Medicare
payment changes during the second quarter of 2011. The Medicare payment changes
impacting the quarter include reductions in average payment rates for
respiratory medications, the impact of new Medicare payment rates in the nine
markets affected by the competitive bidding program, and the ongoing effect of
Medicare oxygen customers reaching the 36-month rental payment cap. Net income
for the quarter ended June 30, 2011, was $42.8 million, a 7.9% decrease compared
with net income of $46.4 million for the second quarter of 2010. Diluted
earnings per share were $0.45 for the quarter ended June 30, 2011, a 4.3%
decrease compared with diluted earnings per share of $0.47 for the comparable
prior year period.

Net revenues for the six months ended June 30, 2011, were $880.6 million, a 6.3%
increase over net revenues of $828.4 million for the comparable period in 2010.
The Company estimates that the 6.3% increase in net revenues in the first six
months of 2011 was comprised of approximately 10.9% internal and acquisition
growth offset by approximately 4.6% negative impact from $37.7 million of
Medicare payment changes impacting the first six months of this year. Net income
for the six months ended June 30, 2011, was $89.1 million, a 1.0% decrease
compared with net income of $90.1 million for the first half of 2010. Diluted
earnings per share were $0.94 for the six months ended June 30, 2011, a 2.0%
increase over diluted earnings per share of $0.92 for the comparable period last
year.

John P. Byrnes, Lincare's Chief Executive Officer, said, "We made steady
progress in the first half of 2011 in executing certain new strategic
initiatives that will provide future expansion for our business. As described in
our first quarter earnings release, we purchased a specialty pharmacy provider
in February of this year and are pleased with the integration of that
acquisition. We are seeing strong market demand for our anti-coagulation testing
business, and are pleased to announce that we now have approximately 10,000
customers using this service. We have also completed acquisitions of companies
that are contracted to provide home oxygen services in seven of nine competitive
bidding markets and positive airway pressure therapy in eight of nine markets.
We are awaiting final approval by the Centers for Medicare and Medicaid Services
(CMS) of the assignment of those contracts."

Lincare added 13 new operating centers in the second quarter derived from
internal expansion. The total number of Lincare locations expanded to 1,106 as
of June 30, 2011.

In addition to the ongoing effects of the Medicare payment changes in 2011, the
Company incurred higher costs and expenses in the second quarter of 2011
compared with the first three months of this year. These include higher costs of
goods sold of $18.1 million attributed to increases in specialty pharmacy drug
volumes and other non-rental items, such as inhalation drugs and CPAP supplies,
and increases in certain operating and other expenses attributable in part to
the expansion of new strategic business lines.

Lincare generated $131.8 million of cash from operating activities during the
first six months of 2011 and invested $57.7 million in net capital expenditures
and $73.0 million in business acquisitions. The Company repurchased 1.7 million
shares of its common stock for $50.0 million, with all repurchases occurring in
the first quarter of 2011. Common shares outstanding at June 30, 2011 were
94,773,075. As of June 30, 2011, total long term obligations, including current
installments, were $532.8 million and cash and investments were $122.1 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 790,000 customers in 48
states.

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
Financial Summary
(In thousands, except share and per share data)
(Unaudited)

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

June 30, June 30,
2011 2010
----------- -----------

Net revenues $ 449,033 $ 418,366
----------- -----------
Cost and expenses:
Costs of goods and services 142,300 113,589
Operating expenses 102,189 99,673
Selling, general and
administrative expenses 85,495 84,280
Bad debt expense 8,981 6,275
Depreciation and amortization
expense 29,987 29,397
----------- -----------
Operating income 80,081 85,152

Interest expense, net 9,148 8,874
----------- -----------

Income before income taxes 70,933 76,278

Income taxes 28,168 29,863
----------- -----------

Net income $ 42,765 $ 46,415
=========== ===========

Basic earnings per common share $ 0.46 $ 0.48
=========== ===========

Diluted earnings per common
share $ 0.45 $ 0.47
=========== ===========

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

Weighted average number of
common shares outstanding 92,096,018 96,080,021
=========== ===========

Weighted average number of
common shares and common share
equivalents outstanding 94,988,981 98,676,500
=========== ===========

For the six months ended
------------------------

June 30, June 30,
2011 2010
----------- -----------

Net revenues $ 880,600 $ 828,406
----------- -----------
Cost and expenses:
Costs of goods and services 266,509 224,515
Operating expenses 204,096 198,200
Selling, general and
administrative expenses 168,374 168,331
Bad debt expense 17,612 12,426
Depreciation and amortization
expense 59,304 58,923
----------- -----------
Operating income 164,705 166,011

Interest expense, net 18,203 17,715
----------- -----------

Income before income taxes 146,502 148,296

Income taxes 57,360 58,245
----------- -----------

Net income $ 89,142 $ 90,051
=========== ===========

Basic earnings per common share $ 0.96 $ 0.94
=========== ===========

Diluted earnings per common
share $ 0.94 $ 0.92
=========== ===========

Dividends declared per common
share $ 0.40 $ 0.20
=========== ===========

Weighted average number of
common shares outstanding 92,534,565 95,896,262
=========== ===========

Weighted average number of
common shares and common share
equivalents outstanding 95,290,690 98,165,238
=========== ===========

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

December
June 30, 31,
2011 2010
---------- ----------
ASSETS

Current assets:
Cash and cash equivalents $82,146 $164,203
Short-term investments 40,000 40,000
Restricted cash 0 345
Accounts receivable, net 233,409 186,001
Income tax receivable 2,460 9,443
Inventories 15,388 13,276
Prepaid and other current
assets 7,499 3,542

Deferred income taxes 24,842 26,488
---------- ----------

Total current assets 405,744 443,298
---------- ----------

Property and equipment, net 337,036 338,778

Goodwill and Other Assets 1,368,388 1,265,755
---------- ----------

Total assets $2,111,168 $2,047,831
========== ==========

LIABILITIES AND STOCKHOLDERS'
EQUITY

Current liabilities:
Current installments of
long-term obligations $21,230 $619
Accounts payable 56,728 64,078
Accrued expenses:
Compensation and benefits 31,815 39,500
Liability insurance 16,316 19,052

Other current liabilities 54,361 51,501
---------- ----------

Total current liabilities 180,450 174,750
---------- ----------

Long-term obligations,
excluding current
installments 511,564 494,271
Deferred income taxes and
other taxes 404,305 381,061
---------- ----------

Total liabilities 1,096,319 1,050,082
---------- ----------

Commitments and contingencies

Stockholders' equity:
Common stock 948 963
Additional paid-in capital 696,342 681,988

Retained earnings 317,559 314,798
---------- ----------

Total stockholders' equity 1,014,849 997,749
---------- ----------

Total liabilities and
stockholders' equity $2,111,168 $2,047,831
========== ==========

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