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CLEARWATER — Despite losing $2.2 million in Medicare payments, Lincare Holdings Inc. posted gains of 16% in net revenues for the first quarter over the previous year and less than 1% growth in net income for the same period, according to a filing with the U.S. Securities and Exchange Commission.
The company had $500.8 million in net revenues in the first quarter compared with $431.5 million during the same period in 2011. Net income increased slightly, growing from $46.37 million in the first quarter of 2011 to $46.4 million this year.
Eleven percent of the Clearwater-based oxygen therapy provider's net revenue growth came from acquisitions, which the firm is using to diversify into other health care fields. In both 2010 and 2011, 10% of the company's revenues came from services outside of respiratory care, which is expected to increase this year.
Also, roughly half of the respiratory therapy market is composed of small companies that make growth of Lincare's core business through acquisition an attractive strategy, according to the financial blog Seeking Alpha.
Lincare Chairman and CEO John P. Byrnes, who received $1.9 million in total compensation in 2011, says he is pleased with the company's first-quarter growth and will continue the acquisition strategy. The firm had net revenues of $1.8 billion in 2011 and its stock is currently trading at $25.24 (Nasdaq: LNCR).
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