Lafayette-based home health and hospice provider LHC Group announced Monday that it has concluded its strategic review and will stay the course on its operating plan, including the possibility of repurchasing up to $50 million of its outstanding common stock with cash on hand or borrowings under existing or new debt facilities.
The process, which the company commenced in November 2011 shortly after settling a dispute with the feds over its billing practices, involved an objective review of all strategic alternatives for the company, including execution of its operating plan for 2012 through 2016. Such reviews also typically involve the possibility a company will put itself on the sale block.
In February the company announced the review in a public statement and said it had hired J.P. Morgan Securities LLC to advise it on its options.
Citing unnamed sources, Reuters reported in March that private equity firm TPG Capital LP was considering making an offer for LHC Group:
“Private equity makes more sense at this point,” said Kevin Ellich, senior research analyst at Piper Jaffray & Co. “You take the company private and deal with the regulatory and reimbursement headwinds in the next couple of years.”
TPG approached LHC after it announced last month that it had appointed J.P. Morgan Securities LLC (JPM.N) to advise it on its options, the people said. This, however, may not necessarily result in an offer, they cautioned.
It's unclear whether talks between the two entities ever materialized, but LHC Group now says it will stay the course it was on before undertaking the review. As a result of the analysis, its board of directors unanimously decided that the best opportunity to enhance shareholder value is for the company remain an independent public corporation.
LHC Group and its home health competitors have been hit hard by reimbursement cuts and federal investigations into their billing practices.
Shares of LHC Group (LHCG) closed at $17.93 Friday on the Nasdaq and were down 94 cents by noon today.
“We engaged in this evaluation from a position of strength and, with the assistance of our legal and financial advisers, carefully considered various alternatives,” Keith G. Myers, LHC Group’s chairman and chief executive officer, said in announcing the conclusion of the review process. “This thorough process has affirmed our belief in the long-term value of our company based on our proven ability to grow through our industry-leading model for hospital partnerships, to improve efficiency by leveraging technology and to control overhead costs.
“Following this review by our board, our management team will continue to execute our operating plan to maximize value for our shareholders and customers. Our strong balance sheet allows us to invest in areas we believe will enhance shareholder value such as acquisitions and stock repurchases.”
The stock repurchase program does not obligate the company to acquire a minimum amount of common stock and can be modified, suspended, terminated or extended by the company at any time.
The parent of Investar Bank says its second-quarter earnings fell to $1.1 million or 26 cents a share from $1.7 million of 44 cents a share in the same period a year ago.
1,554 rigs were exploring for oil and 315 for gas. Two were listed as miscellaneous. A year ago there were 1,770 active rigs.
Most personal auto insurance policies exclude coverage when people charge money to drive others in their personal vehicles.
Louisiana's 21 casinos took in $203.5 million statewide in June, edging up one-half of a percentage point from a year earlier.
Business First Bank has announced plans for a Baton Rouge market expansion through a merger deal with American Gateway Financial Corp.
Mellow Mushroom Pizza Bakers opens on Johnston.
Acadiana's Top 50 Private Companies
It would be an understatement to say Schumacher Group had a challenging year in 2013.
Hampton Toyota has been serving Acadiana as the premier Toyota dealership for more than 10 years. And now, the glossy Johnston Street dealership is looking forward to a makeover.
Even when Floyd Degueyter is on “vacation” he’s hard at work.
As the second largest metal heat treating company in the country, Analytic Stress Relieving Inc. has grown by leaps and bounds since its inception in 1979.
When the Prohibition era came to an end in 1933, Joseph R. Streva saw an opportunity to make a little extra money to supplement his day job.
When a hurricane hits, Brent Mouton doesn’t run. The convenience store chain owner is proof that the challenges of mother nature can almost break a business, but Mouton learned to grow out of temporary closure from near devastation in 2002 and of lost potential revenue.
By launching a Super PAC to end all Super PACs, our Top 50 keynote speaker hopes to change the game in Washington.
Oil Center-based private facility extends its offerings with special events venue in failed women’s store.
One year later, is his expansion plan paying off?
Newspaper industry insiders question John Georges’ expansion plan.
How the U.S. has gotten itself into another fine mess
The Heymann Center was transformed into a culinary adventure in mid-June for the EatLafayette kick-off event, A Taste of Lafayette, and for the third consecutive year, a sellout crowd filled the Cajundome Convention Center June 19 to hear LEDA chief Gregg Gothreaux’s State of the Economy report.
A look at recent hirings, promotions and other announcements from Acadiana's business community.
Anne Pyle puts a bow on a stellar, expectations-defying career with her latest venture.
The company currently has 10 branches throughout Louisiana, including an Ambassador Caffery location which opened last year.
Lawmakers have added $15 million to the attorney general's budget to pay for Louisiana's ongoing legal case against BP for damages caused by the 2010 Gulf oil spill.
The state's jobless rate rose to 5 percent in June from 4.9 percent in May. Louisiana's unemployment rate was 6.4 percent in June 2013.
Long-established private club opening special events venue in failed women’s store at Kaliste Saloom Road and Camellia Boulevard.