LHC Group (LHCG) Concludes Review of Strategic Alternatives; Will Stay Course, Continue $50M Buyback
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The Board of Directors of LHC Group Inc. (Nasdaq: LHCG), has reaffirmed the Company's commitment to maximizing shareholder value as an independent public corporation, concluding the Company's previously announced review of strategic alternatives.
The review process commenced in November 2011 and involved an objective review of all strategic alternatives for the Company, including execution of the Company's operating plan for 2012 through 2016. Following this comprehensive review process, the Company's Board of Directors unanimously concluded that the continued execution of the Company's operating plan, supplemented by its share repurchase program, provides the best opportunity to enhance value for the Company's shareholders.
"We engaged in this evaluation from a position of strength and, with the assistance of our legal and financial advisers, carefully considered various alternatives," said Keith G. Myers, LHC Group's Chairman and Chief Executive Officer. "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 Company's Board of Directors also authorized the continuation of a stock repurchase program under which the Company may repurchase up to $50 million of LHC Group's outstanding common stock. The stock repurchase program does not obligate the company to acquire a minimum amount of common stock and may be modified, suspended, terminated or extended by the company at any time without prior notice. Repurchases under the stock repurchase program would be funded from available cash or borrowings under existing or new debt facilities.
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The review process commenced in November 2011 and involved an objective review of all strategic alternatives for the Company, including execution of the Company's operating plan for 2012 through 2016. Following this comprehensive review process, the Company's Board of Directors unanimously concluded that the continued execution of the Company's operating plan, supplemented by its share repurchase program, provides the best opportunity to enhance value for the Company's shareholders.
"We engaged in this evaluation from a position of strength and, with the assistance of our legal and financial advisers, carefully considered various alternatives," said Keith G. Myers, LHC Group's Chairman and Chief Executive Officer. "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 Company's Board of Directors also authorized the continuation of a stock repurchase program under which the Company may repurchase up to $50 million of LHC Group's outstanding common stock. The stock repurchase program does not obligate the company to acquire a minimum amount of common stock and may be modified, suspended, terminated or extended by the company at any time without prior notice. Repurchases under the stock repurchase program would be funded from available cash or borrowings under existing or new debt facilities.
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