Press Release

Amedisys Reports Second Quarter Financial Results

Company Release - 8/2/2016 7:29 PM ET

ANNOUNCES EXECUTIVE RETIREMENT

TO HOST CONFERENCE CALL AUGUST 3, 2016 AT 11:00 A.M. ET

BATON ROUGE, La., Aug. 02, 2016 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ:AMED), a leading home health and hospice company, today reported its financial results for the three and six-month periods ended June 30, 2016.

Three-Month Periods Ended June 30, 2016 and 2015 

  • Net service revenue increased $46.6 million to $360.7 million compared to $314.1 million in 2015.
  • Net income attributable to Amedisys, Inc. of $10.7 million compared to $10.6 million in 2015.
  • Net income attributable to Amedisys, Inc. per diluted share remained at $0.32 per diluted share when compared to 2015.

Adjusted Results* 

  • Adjusted net service revenue of $361.7 million compared to $314.1 million in 2015.
  • Adjusted net income attributable to Amedisys, Inc. of $14.1 million compared to $14.5 million in 2015.
  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $0.42 compared to $0.43 in 2015.
  • Adjusted EBITDA (defined as net income (loss) attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization excluding certain items) of $29.8 million compared to $31.7 million in 2015.

Six-Month Periods Ended June 30, 2016 and 2015 

  • Net service revenue increased $93.8 million to $709.5 million compared to $615.7 million in 2015.
  • Net income attributable to Amedisys, Inc. of $16.9 million compared to $24.4 million net loss in 2015.
  • Net income attributable to Amedisys, Inc. per diluted share increased $1.24 to $0.50 compared to $0.74 net loss per diluted share in 2015.

Adjusted Results* 

  • Adjusted net service revenue of $710.5 million compared to $615.7 million in 2015.
  • Adjusted net income attributable to Amedisys, Inc. of $25.0 million compared to $24.3 million in 2015.
  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $0.74 compared to $0.73 in 2015.
  • Adjusted EBITDA of $53.8 million compared to $58.0 million in 2015.

*  See pages 11 and 12 for the reconciliations of non-GAAP financial measures to GAAP measures.

Executive Retirement

On August 2, 2016, Ronald A. LaBorde, the Vice Chairman and Chief Financial Officer of the Company, announced his intention to retire from the Company and the Board of Directors as of January 2, 2017.

Paul B. Kusserow, President and Chief Executive Officer stated, “I am proud of the strong results our team delivered in the second quarter, even as we incurred deeper than anticipated software implementation disruption costs. We delivered strong growth across the board in all segments, drove improving clinical quality metrics and saw reduced employee turnover. We are continuing to progress successfully through our technology transformation and remain confident in our ability to deliver on the efficiencies that we have promised to our shareholders.”

Kusserow continued, “Lastly, while five months away, I would like to thank Ronnie LaBorde for his contribution to Amedisys which been invaluable, particularly during the turnaround in 2014. I appreciate his contribution as a trusted colleague and friend. He will leave the company in a strong and stable position with a great future trajectory. You couldn’t ask for a better legacy.”

We urge caution in considering the current trends disclosed in this press release. The home health and hospice industry is highly competitive and subject to intensive regulations, and trends are subject to numerous factors, risks, and uncertainties, some of which are referenced in the cautionary language below and others that are described more fully in our reports filed with the Securities and Exchange Commission (“SEC”) including our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, and subsequent Quarterly Reports on Form 10-Q, and current reports on Form 8-K which can be found on the SEC’s internet website, http://www.sec.gov, and our internet website, http://www.amedisys.com. We disclaim any obligations to update disclosed information on trends.

Earnings Call and Webcast Information

To participate on the conference call, please call a few minutes before 11:00 a.m. ET to either (877) 524-8416 (Toll-Free) or (412) 902-1028 (Toll). A replay of the conference call will be available through September 3, 2016 by dialing (877) 660-6853 (Toll- Free) or (201) 612-7415 (Toll) and entering conference ID #13641920.

A live webcast of the call will be accessible through our website on our Investor Relations section at the following web address: http://investors.amedisys.com.

Amedisys, Inc. (the “Company”) is headquartered in Baton Rouge, Louisiana and our common stock trades on the NASDAQ Global Select Market under the symbol “AMED”.

Additional information

Our company website address is www.amedisys.com. We use our website as a channel of distribution for important company information. Important information, including press releases, analyst presentations and financial information regarding our company, is routinely posted on and accessible on the Investor Relations subpage of our website, which is accessible by clicking on the tab labeled “Investors” on our website home page. We also use our website to expedite public access to time-critical information regarding our company in advance of or in lieu of distributing a press release or a filing with the SEC disclosing the same information. Therefore, investors should look to the Investor Relations subpage of our website for important and time-critical information. Visitors to our website can also register to receive automatic e-mail and other notifications alerting them when new information is made available on the Investor Relations subpage of our website.

Forward-Looking Statements

When included in this press release, words like “believes,” “belief,” “expects,” “plans,” “anticipates,” “intends,” “projects,” “estimates,” “may,” “might,” “would,” “should” and similar expressions are intended to identify forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a variety of risks and uncertainties that could cause actual results to differ materially from those described therein. These risks and uncertainties include, but are not limited to the following: changes in Medicare and other medical payment levels, our ability to open care centers, acquire additional care centers and integrate and operate these care centers effectively, changes in or our failure to comply with existing Federal and State laws or regulations or the inability to comply with new government regulations on a timely basis, competition in the home health industry, changes in the case mix of patients and payment methodologies, changes in estimates and judgments associated with critical accounting policies, our ability to maintain or establish new patient referral sources, our ability to attract and retain qualified personnel, changes in payments and covered services due to the economic downturn and deficit spending by Federal and State governments, future cost containment initiatives undertaken by third-party payors, our access to financing due to the volatility and disruption of the capital and credit markets, our ability to meet debt service requirements and comply with covenants in debt agreements, business disruptions due to natural disasters or acts of terrorism, our ability to integrate and manage our information systems, our ability to comply with requirements stipulated in our corporate integrity agreement and changes in law or developments with respect to any litigation relating to the Company, including various other matters, many of which are beyond our control.

Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on any forward-looking statement as a prediction of future events. We expressly disclaim any obligation or undertaking and we do not intend to release publicly any updates or changes in our expectations concerning the forward- looking statements or any changes in events, conditions or circumstances upon which any forward-looking statement may be based, except as required by law.

Non-GAAP Financial Measures

This press release includes the following non-GAAP financial measures as defined under SEC rules: (1) EBITDA, defined as net income (loss) attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization; (2) adjusted EBITDA, defined as EBITDA excluding certain items; (3) adjusted net service revenue, defined as net service revenue excluding certain items; (4) adjusted net income attributable to Amedisys, Inc., defined as net income (loss) attributable to Amedisys, Inc. excluding certain items; and (5) adjusted net income attributable to Amedisys, Inc. per diluted share, defined as net income (loss) attributable to Amedisys, Inc. common stockholders per diluted share excluding certain items. In accordance with SEC rules, we have provided herein a reconciliation of these non-GAAP financial measures to the most directly comparable measures under GAAP. Management believes that these are useful gauges of our performance and are common measures used in our industry to assess relative financial performance among companies.

AMEDISYS, INC. AND SUBSIDIARIES
SELECT CONSOLIDATED FINANCIAL STATEMENT DATA AND SUPPLEMENTAL INFORMATION
(Amounts in thousands, except share, per share data and statistical information)

Balance Sheet Information      
       
  June 30, 2016   December 31, 2015 
  (Unaudited)    
ASSETS      
Current assets:      
Cash and cash equivalents$  9,968 $  27,502 
Patient accounts receivable, net of allowance for doubtful accounts of $15,950 and $16,526 152,213   125,010 
Prepaid expenses 7,931  8,110 
Other current assets   9,407    14,641 
Total current assets 179,519  175,263 
Property and equipment, net of accumulated depreciation of $139,433 and $141,793 44,617  42,695 
Goodwill 280,349  261,663 
Intangible assets, net of accumulated amortization of $26,525 and $25,386 47,728  44,047 
Deferred income taxes 121,014  125,245 
Other assets, net   37,875    32,802 
Total assets$   711,102 $  681,715 
LIABILITIES AND EQUITY  
Current liabilities:  
Accounts payable$  35,070 $  25,682 
Payroll and employee benefits 86,075  72,546 
Accrued expenses 63,641  71,965 
Current portion of long-term obligations 5,000  5,000 
Total current liabilities 189,786  175,193 
Long-term obligations, less current portion 89,500  91,630 
Other long-term obligations 3,991  4,456 
Total liabilities 283,277  271,279 
Equity:      
Preferred stock, $0.001 par value, 5,000,000 shares authorized; none issued or outstanding    
Common stock, $0.001 par value, 60,000,000 shares authorized; 35,136,248 and 34,786,966 shares issued; and 33,499,944 and 33,607,282 shares outstanding 35  35 
Additional paid-in capital 523,583  504,290 
Treasury stock at cost, 1,636,304 and 1,179,684 shares of common stock (45,829) (26,966)
Accumulated other comprehensive income 15  15 
Retained earnings   (50,897)   (67,806)
Total Amedisys, Inc. stockholders’ equity 426,907  409,568 
Noncontrolling interests   918  868 
Total equity 427,825  410,436 
Total liabilities and equity$   711,102 $
  681,715 
       


Statement of Operations Information (Unaudited) 
             
  For the Three-Month Periods Ended June 30,  For the Six-Month Periods Ended June 30, 
  2016  2015  2016  2015 
Net service revenue$   360,746 $   314,152 $709,563 $615,724 
Cost of service, excluding depreciation and amortization 206,505  175,699  408,342  346,660 
General and administrative expenses:    
Salaries and benefits 77,343  71,249  154,060  139,804 
Non-cash compensation 3,736  2,193  7,806  4,577 
Other 45,576  42,113  92,293  75,183 
Provision for doubtful accounts 4,253  2,756  8,193  5,732 
Depreciation and amortization 4,975  4,615  9,448  11,152 
Asset impairment charge       75,193 
Operating expenses   342,388    298,625     680,142     658,301 
Operating income (loss) 18,358  15,527  29,421  (42,577)
Other (expense) income:    
Interest income 9  4  31  26 
Interest expense (1,303) (2,416) (2,415) (4,842)
Equity in earnings from equity method investments 363  4,826  358  6,777 
Miscellaneous, net   658    498    1,393    2,632 
Total other (expense) income, net (273) 2,912  (633) 4,593 
Income (loss) before income taxes 18,085  18,439  28,788  (37,984)
Income tax (expense) benefit (7,242) (7,566) (11,630) 14,025 
Net income (loss) 10,843  10,873  17,158  (23,959)
Net income attributable to noncontrolling interests (147) (236) (249) (413)
Net income (loss) attributable to Amedisys, Inc.$  10,696 $  10,637 $   16,909 $ (24,372)
Basic earnings per common share:    
Net income (loss) attributable to Amedisys, Inc. common stockholders  $0.32 $  0.32 $  0.51 $  (0.74)
Weighted average shares outstanding    33,197  33,004  33,059  32,871 
Diluted earnings per common share:
    
Net income (loss) attributable to Amedisys, Inc. common stockholders $  0.32 $  0.32 $  0.50 $  (0.74)
Weighted average shares outstanding  33,708  33,459  33,641  32,871 
      


Cash Flow and Days Revenue Outstanding, Net Information 
             
  For the Three-Month Periods Ended June 30,  For the Six-Month Periods Ended June 30, 
  2016  2015  2016  2015 
Net cash provided by operating activities$14,651 $42,554 $26,895 $57,037 
Net cash used in investing activities (3,597) (9,754) (37,751) (11,822)
Net cash used in financing activities (8,910) (2,731) (6,678) (20,046)
Net increase (decrease) in cash and cash equivalents 2,144  30,069  (17,534) 25,169 
Cash and cash equivalents at beginning of period 7,824  3,132  27,502  8,032 
Cash and cash equivalents at end of period$  9,968 $  33,201 $  9,968 $   33,201 
Days revenue outstanding, net (1) 37.2  31.0  37.2  31.0 
             

(1) Our calculation of days revenue outstanding, net at June 30, 2016 and 2015 is derived by dividing our ending patient accounts receivable (i.e., net of estimated revenue adjustments and allowance for doubtful accounts) by our average daily net patient revenue for the three-month period ended June 30, 2016 and 2015, respectively.

Supplemental Information - Home Health
 
  For the Three-Month Periods Ended June 30, 
Financial Information (in millions): 201   2015 
Medicare$208.4 $188.3 
Non-Medicare 67.1  59.5 
Net service revenue 275.5  247.8 
Cost of service 160.3  142.3 
Gross margin 115.2  105.5 
Other operating expenses 77.4  67.1 
Operating income$37.8 $38.4 
Key Statistical Data:      
Medicare:      
Same Store Volume (1):      
Revenue 4% (1%)
Admissions 4% 0%
Recertifications 2% (6%)
Total (2):  
Admissions 48,982  44,188 
Recertifications 26,020  24,607 
Completed episodes 74,027  67,702 
Visits 1,315,417  1,203,648 
Average revenue per completed episode (3)$2,850 $2,828 
Visits per completed episode (4) 17.7  17.5 
Non-Medicare:  
Same Store Volume (1):  
Revenue 13% 16%
Admissions 2% 15%
Recertifications 12% 8%
Total (2):  
Admissions 24,237  23,792 
Recertifications 9,640  8,637 
Visits 515,062  482,689 
Total (2):  
Cost per Visit$87.56 $84.43 
Visits 1,830,479  1,686,337 
   


       
  For the Six-Month Periods Ended June 30, 
Financial Information (in millions): 2016  2015 
Medicare$415.2 $375.5 
Non-Medicare 133.0  113.7 
Net service revenue 548.2  489.2 
Cost of service 321.1  281.0 
Gross margin 227.1  208.2 
Other operating expenses 153.1  134.0 
Operating income$74.0 $74.2 
Key Statistical Data:  
Medicare:  
Same Store Volume (1):  
Revenue 4% 2%
Admissions 4% 1%
Recertifications 3% (3%)
Total (2):  
Admissions 99,400  89,539 
Recertifications 52,043  48,966 
Completed episodes 146,059  133,013 
Visits 2,626,788  2,371,898 
Average revenue per completed episode (3)$2,831 $2,811 
Visits per completed episode (4) 17.6  17.4 
Non-Medicare:  
Same Store Volume (1):  
Revenue 17% 18%
Admissions 6% 16%
Recertifications 17% 12%
Total (2):  
Admissions 49,804  46,941 
Recertifications 19,466  16,625 
Visits 1,043,031  920,154 
Total (2):  
Cost per Visit$87.51 $85.36 
Visits 3,669,819  3,292,052 
       

(1) Same store Medicare and Non-Medicare revenue, admissions or recertifications growth (decline) is the percent increase (decrease) in our Medicare and Non-Medicare revenue, admissions or recertifications for the period as a percent of the Medicare and Non-Medicare revenue, admissions or recertifications of the prior period.
(2) Total includes acquisitions.
(3) Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare completed episode of care which includes the impact of sequestration.
(4) Medicare visits per completed episode are the home health Medicare visits on completed episodes divided by the home health Medicare episodes completed during the period.

Supplemental Information - Hospice 
  For the Three-Month Periods Ended June 30, 
  2016  2015 
Medicare$  71.3 $  62.5 
Non-Medicare 4.5  3.8 
Net service revenue 75.8  66.3 
Cost of service 39.4  33.4 
Gross margin 36.4  32.9 
Other operating expenses 18.4  16.0 
Operating income$  18.0 $  16.9 
Key Statistical Data:      
Same Store Volume (1):      
Medicare revenue 14% 10%
Non-Medicare revenue 15% 5%
Hospice admissions 18% 11%
Average daily census 16% 7%
Total (2):  
Hospice admissions 5,576  4,713 
Average daily census 5,730  4,944 
Revenue per day, net$  145.40 $  147.53 
Cost of service per day$  75.69 $  74.07 
Average length of stay 94  86 
       

 

  For the Six-Month Periods Ended June 30, 
  2016  2015 
Financial Information (in millions):      
Medicare$  140.0 $  118.9 
Non-Medicare 8.8  7.6 
Net service revenue 148.8  126.5 
Cost of service 78.2  65.7 
Gross margin 70.6  60.8 
Other operating expenses 36.3  31.2 
Operating income$  34.3 $  29.6 
Key Statistical Data:      
Same Store Volume (1):      
Medicare revenue 18% 6%
Non-Medicare revenue 15% 9%
Hospice admissions 19% 9%
Average daily census 19% 4%
Total (2):  
Hospice admissions 11,006  9,277 
Average daily census 5,618  4,744 
Revenue per day, net$  145.52 $  147.39 
Cost of service per day$  76.51 $  76.47 
Average length of stay 95  88 
       

(1) Same store Medicare and Non-Medicare revenue, Hospice admissions or average daily census growth (decline) is the percent increase (decrease) in our Medicare and Non-Medicare revenue, Hospice admissions or average daily census for the period as a percent of the Medicare and Non-Medicare revenue, Hospice admissions or average daily census of the prior period.
(2) Total includes acquisitions.

 Supplemental Information - Corporate
   For the Three-Month Periods Ended June 30,  
   2016  2015  
 Other operating expenses$  34.7 $  36.8  
 Depreciation and amortization 3.1  3.0  
 Total$37.8 $39.8
  
             


 
  For the Six-Month Periods Ended June 30,
  2016 2015
Financial Information (in millions):    
Other operating expenses$73.7$63.6
Depreciation and amortization 6.0 7.6 
Total before impairment (1)$79.7$71.2
     

1) Total of $146.4 million on a GAAP basis for the six-month period ended June 30, 2015 (including $75.2 million asset impairment charge).

AMEDISYS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL STATEMENTS
(Amounts in thousands)

(Unaudited)

Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA: 

  For the Three-Month Periods
Ended June 30,
  For the Six-Month Periods
Ended June 30,
 
  2016  2015  2016  2015 
Net income (loss) attributable to Amedisys, Inc.$10,696 $10,637 $   16,909 $   (24,372)
Add:    
Income tax expense (benefit) 7,242  7,566  11,630  (14,025)
Interest expense, net 1,294  2,412  2,384  4,816 
Depreciation and amortization 4,975  4,615  9,448  11,152 
EBITDA (1)(7) 24,207  25,230  40,371  (22,429)
Add:    
Certain items (2) 5,636  6,427  13,402  80,467 
Adjusted EBITDA (3)(7)$29,843 $31,657 $   53,773 $58,038 
             

Adjusted Net Service Revenue Reconciliation:

 

  For the Three-Month Periods
Ended June 30,
  For the Six-Month Periods
Ended June 30,
 
  2016  2015  2016  2015 
Net service revenue$360,746 $314,152 $ 709,563 $ 615,724 
Add:    
Certain items (2) 948    948   
Adjusted net service revenue (4)(7)$   361,694 $314,152  $710,511 $ 615,724 
           

Adjusted Net Income Attributable to Amedisys, Inc. Reconciliation:

 

  For the Three-Month Periods
Ended June 30,

  For the Six-Month Periods
Ended June 30,

 
  2016  2015  2016  2015 
Net income (loss) attributable to Amedisys, Inc.$10,696 $10,637 $   16,909 $   (24,372)
Add:      
Certain items (2) 3,410  3,888  8,108  48,682 
Adjusted net income attributable to Amedisys, Inc. (5)(7)$14,106 $14,525 $   25,017 $24,310 
             

Adjusted Net Income Attributable to Amedisys, Inc. per Diluted Share:

             
  For the Three-Month Periods
Ended June 30,
  For the Six-Month Periods
Ended June 30,
 
  2016  2015  2016  2015 
Net income (loss) attributable to Amedisys, Inc. common stockholders per diluted share$0.32 $0.32 $0.50 $(0.74)
Add:    
Certain items (2) 0.10  0.12  0.24  1.48 
Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (6)(7)$0.42 $0.43 $0.74 $0.73 
             

(1) EBITDA is defined as net income (loss) attributable to Amedisys, Inc. before provision for income taxes, net interest expense, and depreciation and amortization.

(2) The following details the certain items for the three and six-month periods ended June 30, 2016 and 2015:

 

  For the Three-Month Period
Ended June 30, 2016
  For the Six-Month Period
Ended June 30, 2016
 
  (Income) Expense  (Income) Expense 
HCHB implementation$2,593 $5,033 
Acquisition costs 337  2,042 
Legal fees - non-routine 459  1,976 
Legal settlements (265) (806)
Restructuring activity 1,494  3,703 
Third party audit reserve 948  948 
Miscellaneous, other (income) expense, net 70  506 
Total$5,636 $13,402 
Net of tax 3,410  8,108 
Diluted EPS 0.10  0.24 
       

 

  For the Three-Month Period
Ended June 30, 2015
  For the Six-Month Period
Ended June 30, 2015
 
  (Income) Expense   (Income) Expense  
Wage and Hour litigation$8,000 $8,000 
Legal settlements (307) (1,125)
Inventory and Data Security Reporting   2,121 
Asset impairment   75,193 
Restructuring activity 2,679  2,679 
Miscellaneous, other (income) expense, net  (3,945) (6,401)
Total$6,427 $80,467 
Net of tax$3,888 $48,682 
Diluted EPS$0.12 $1.48 
       

(3) Adjusted EBITDA is defined as EBITDA, as defined in footnote 1, excluding certain items as described in footnote 2.
(4) Adjusted net service revenue is defined as net service revenue plus certain items as described in footnote 2.
(5) Adjusted net income attributable to Amedisys, Inc. is defined as net income (loss) attributable to Amedisys, Inc. excluding certain other items as described in footnote 2.
(6) Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share is defined as diluted income (loss) per share excluding the earnings per share effect of certain items as described in footnote 2.
(7) EBITDA, adjusted EBITDA, adjusted net service revenue, adjusted net income attributable to Amedisys, Inc. and adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share should not be considered as an alternative to, or more meaningful than, income before income taxes, cash flow from operating activities, or other traditional indicators of operating performance. These calculations may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate these non-GAAP financial measures in the same manner.

Contact:
Investor Contact:
Amedisys, Inc.
David Castille
Managing Director, Treasury/Finance
(225) 299-3391
david.castille@amedisys.com

Media Contact:
Amedisys, Inc.
Kendra Kimmons
Managing Director, Marketing & Communications
(225) 299-3720
kendra.kimmons@amedisys.com

Primary Logo

Source: Amedisys, Inc.

Contact Information

Amedisys Corporate Headquarters
3854 American Way
Baton Rouge, LA 70816
(225) 292-2031
Amedisys Executive Office
209 10th Avenue S.
Suite 512
Nashville, TN 37203
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