Lincare Holdings Inc. Reports Operating Results (10-K)
Lincare Holdings Inc. has a market cap of $2.87 billion; its shares were traded at around $29.39 with a P/E ratio of 15.7 and P/S ratio of 1.7. The dividend yield of Lincare Holdings Inc. stocks is 2.7%. Lincare Holdings Inc. had an annual average earning growth of 9.6% over the past 10 years. GuruFocus rated Lincare Holdings Inc. the business predictability rank of 3.5-star.Hedge Fund Gurus that owns LNCR: Steve Mandel of Lone Pine Capital, Larry Robbins of Glenview Capital, Joel Greenblatt of Gotham Capital, Bruce Kovner of Caxton Associates, Jim Simons of Renaissance Technologies LLC, George Soros of Soros Fund Management LLC, Steven Cohen of SAC Capital Advisors. Mutual Fund and Other Gurus that owns LNCR: First Pacific Advisors of First Pacific Advisors, LLC, Chuck Royce of Royce& Associates, Pioneer Investments, Jeremy Grantham of GMO LLC.
Highlight of Business Operations: The aggregate market value of the registrants common stock, $.01 par value, held by non-affiliates of the registrant, based on a $32.51 closing sale price of the common stock on June 30, 2010, as reported on the NASDAQ Global Market, was approximately $3,129,748,006.
We acquired certain operating assets of six companies in 2010 and two companies in 2009, with operations in multiple states. The aggregate acquisition date fair values for these acquisitions were $19.0 million and $11.7 million in 2010 and 2009, respectively.
The MIPPA legislation imposed a 9.5% reduction in Medicare payment rates for certain specified product categories, including oxygen, effective January 1, 2009. In addition to the 9.5% reduction, the Centers for Medicare and Medicaid Services (CMS), as required by statute, subjected the monthly payment amount for stationary oxygen equipment to additional cuts of 2.3%, thereby reducing the monthly payment rate from $199.28 in 2008 to $175.79 in 2009. The monthly payment amount was reduced by 1.5% in 2010, to $173.17. We estimate that this reduction negatively impacted our revenues in 2010 by approximately $8.4 million when compared to the prior year period. The stationary oxygen payment rate for 2011 has been established by CMS at $173.31 per month, an increase of 0.1%.
inhalation drugs dispensed within that quarter. These payment rates may be subject to volatility as a result of the underlying ASP data used to determine the rates in effect each quarter. The quarterly ASP data published by CMS for inhalation drugs provided in 2010 resulted in reductions in the Medicare payment rates for inhalation drugs that negatively impacted the Companys net revenues by approximately $5.0 million in 2010. If the ASP payment rates published by CMS for the first quarter of 2011 were to remain in effect for all of 2011, and assuming no changes in the volume or mix of drugs that we currently dispense, we estimate that our net revenues would be negatively impacted by approximately $13.6 million in 2011 when compared with 2010. We can not determine whether quarterly updates in ASP pricing data will continue to result in ongoing reductions in payment rates for inhalation drugs, or what impact such payment reductions could have on our business in the future.
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