Odyssey HealthCare reports 53.7% increase in first-quarter net income attributable to stockholders

Odyssey HealthCare, Inc. (NASDAQ: ODSY), one of the largest providers of hospice care in the United States, today announced financial results for the first quarter ended March 31, 2010.

For the first quarter of 2010, net patient service revenue from continuing operations increased 2.4% to $171.5 million, compared with $167.5 million for the first quarter of 2009. The Company's net income attributable to Odyssey stockholders for the first quarter of 2010 was $13.4 million, or $0.40 per diluted share, as compared with $8.7 million, or $0.26 per diluted share, for the first quarter of 2009. The Company's EBITDA from continuing operations for the first quarter of 2010 was $25.1 million, compared with $17.1 million for the first quarter of 2009.

In commenting on the results, Robert A. Lefton, president and chief executive officer of Odyssey HealthCare, said, "Overall, I am pleased with our results for the first quarter of 2010, with net income attributable to Odyssey stockholders increasing by 53.7% over the first quarter of 2009. I am particularly pleased with our expense management during the quarter, with adjusted operating expenses per patient day decreasing from $137.16 for the first quarter of 2009 to $132.03 for the first quarter of 2010. On a sequential basis, adjusted operating expenses per patient day for the first quarter of 2010 were essentially flat compared with $132.12 for the fourth quarter of 2009. With respect to the Medicare cap, our admission volume helped reduce our Medicare cap contractual adjustment to 0.7% of gross patient service revenue for the first quarter of 2010 as compared with 0.8% for the first quarter of 2009 and 1.1% for the fourth quarter of 2009."

In closing, Mr. Lefton added, "Due to our progress in reducing claims subject to additional document requests from our Medicare fiscal intermediaries, we reduced our bad debt expense as a percentage of net revenue to 0.9% for the first quarter of 2010 as compared with 1.4% for the first quarter of 2009 and 1.5% for the fourth quarter of 2009. As a result of our good operating results and collection efforts, we ended the first quarter of 2010 with a cash balance of $141.9 million."

The Company also announced that its hospice programs in Alameda County, California, and Salem, Oregon, received their Medicare certification during the first quarter of 2010.

SOURCE Odyssey HealthCare, Inc.