Press Release

Amedisys Reports Third Quarter 2017 Financial Results

Company Release - 11/7/2017 5:00 PM ET

BATON ROUGE, La., Nov. 07, 2017 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ:AMED) today reported its financial results for the three and nine-month periods ended September 30, 2017.

Three Month Periods Ended September 30, 2017 and 2016

  • Net service revenue increased $18.6 million to $380.2 million compared to $361.6 million in 2016.
  • Net income attributable to Amedisys, Inc. of $14.6 million compared to $11.4 million in 2016.
  • Net income attributable to Amedisys, Inc. per diluted share of $0.42 compared to $0.34 in 2016.

Adjusted Quarterly Results*

  • Adjusted EBITDA of $36.9 million compared to $25.6 million in 2016.
  • Adjusted net service revenue of $386.7 million compared to $361.6 million in 2016.
  • Adjusted net income attributable to Amedisys, Inc. of $19.2 million compared to $12.1 million in 2016.
  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $0.56 compared to $0.36 in 2016.

Nine Month Periods Ended September 30, 2017 and 2016

  • Net service revenue increased $58.3 million to $1,129.4 million compared to $1,071.1 million in 2016.
  • Net income attributable to Amedisys, Inc. of $34.1 million compared to $28.3 million in 2016.
  • Net income attributable to Amedisys, Inc. per diluted share of $1.00 compared to $0.84 in 2016.

Adjusted Year to Date Results*

  • Adjusted EBITDA of $105.0 million compared to $79.4 million in 2016.
  • Adjusted net service revenue of $1,135.9 million compared to $1,072.1 million in 2016.
  • Adjusted net income attributable to Amedisys, Inc. of $56.5 million compared to $37.2 million in 2016.
  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.65 compared to $1.10 in 2016.

*  See the Reconciliation of Non-GAAP Financial Measures to GAAP Measures table for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

Paul B. Kusserow, President and Chief Executive Officer stated, “I am proud of our third quarter results and the strong execution of our team. We are pleased with the growth trends we are seeing in home health, after experiencing some obstacles in the last few quarters. Our strategies around home health business development hiring, retention and training are delivering the desired results, and now we must continue that momentum. Our hospice segment continues its stellar performance, with 18% revenue growth compared to the third quarter of 2016. Our personal care segment has built out an impressive platform for growth in under two years and has integrated tuck-in acquisitions to fill out its footprint in Massachusetts. Most importantly, our clinical and outcomes metrics continue to improve as we pursue the goal of clinical distinction for our patients, referral sources and payors. On the regulatory side, we are pleased with the CMS decision not to finalize the home health groupings model. While we are supportive of payment reform in home health, we must ensure that any reform is designed such that patient access to home health services is not negatively impacted. Finally, thanks to our team of over 17,000 employees for continuing to provide excellent care to our patients.”

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, 2016, 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.

Earnings Call and Webcast Information

Amedisys will host a conference call on Wednesday, November 8, 2017, at 11:00 a.m. ET to discuss its third quarter results. To participate on the conference call, please call 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 December 8, 2017 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13672018.

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.

Non-GAAP Financial Measures

This press release includes reconciliations of the most comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”) to non-GAAP financial measures. The non-GAAP financial measures as defined under SEC rules are as follows: (1) adjusted EBITDA, defined as net income attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization, excluding certain items; (2) adjusted net service revenue, defined as net service revenue excluding certain items; (3) adjusted net income attributable to Amedisys, Inc., defined as net income attributable to Amedisys, Inc. excluding certain items; and (4) adjusted net income attributable to Amedisys, Inc. per diluted share, defined as net income attributable to Amedisys, Inc. common stockholders per diluted share excluding certain items. Management believes that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, are useful gauges of our current performance and are also included in internal management reporting. These non-GAAP financial measures should be considered in addition to, and not more meaningful than or as an alternative to the GAAP financial measures presented in this earnings release and the company’s financial statements. Non-GAAP measures as presented herein may not be comparable to similarly titled measures reported by other companies since not all companies calculate these non-GAAP measures consistently.

Additional information

Amedisys, Inc. (the “Company”) is a leading healthcare at home Company delivering personalized home health, hospice and personal care. Amedisys is focused on delivering the care that is best for our patients, whether that is home-based personal care; recovery and rehabilitation after an operation or injury; care focused on empowering them to manage a chronic disease; or hospice care at the end of life. More than 2,200 hospitals and 61,900 physicians nationwide have chosen Amedisys as a partner in post-acute care. Founded in 1982, headquartered in Baton Rouge, LA with an executive office in Nashville, TN, Amedisys is a publicly held company. With more than 17,000 employees, in 425 care centers in 34 states and the District of Columbia, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 385,000 patients in need every year. For more information about the Company, please visit: www.amedisys.com.

We use our website as a channel of distribution for important company information. Important information, including press releases, investor 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. 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 healthcare industry, our ability to integrate our personal care segment into our business efficiently, 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 by federal and state governments, future cost containment initiatives undertaken by third-party payors, our access to financing, 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, manage and keep our information systems secure, 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.

Contact: Investor Contact:   Media Contact:
  Amedisys, Inc.  Amedisys, Inc.
  David Castille  Kendra Kimmons
  Managing Director, Treasury/Finance  Vice President, Marketing & Communications
  (855) 259-2046  (225) 299-3720
  IR@amedisys.com   kendra.kimmons@amedisys.com 



AMEDISYS, INC. AND SUBSIDIARIES 
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS 
(Amounts in thousands, except per share data) 
(Unaudited) 
 
     
 For the Three Month Period
Ended September 30,
 
 
For the Nine Month Period
Ended September 30,

  2017     2016     2017     2016   
Net service revenue$  380,163  $  361,595  $  1,129,442  $  1,071,158 
Cost of service, excluding depreciation and amortization   226,642     212,124     662,192     620,466 
General and administrative expenses:    
Salaries and benefits    77,130     77,019     226,532     231,079 
Non-cash compensation    3,558     4,750     11,788     12,556 
Other   38,189     42,658     120,223     134,951 
Provision for doubtful accounts    7,086     5,471     18,078     13,664 
Depreciation and amortization   4,185     5,214     13,139     14,662 
Securities Class Action Lawsuit settlement, net   —      —      28,712     —  
        
Operating expenses   356,790     347,236     1,080,664     1,027,378 
        
Operating income   23,373     14,359     48,778     43,780 
Other income (expense):    
Interest income   44     14     104     45 
Interest expense   (1,335)    (1,136)    (3,600)    (3,551)
Equity in earnings from equity method investments   900     3,244     3,149     3,602 
Miscellaneous, net   1,043     1,713     3,282     3,106 
        
Total other income, net    652     3,835     2,935     3,202 
Income before income taxes    24,025     18,194     51,713     46,982 
Income tax expense    (9,364)    (6,693)    (17,324)    (18,323)
        
Net income   14,661     11,501     34,389     28,659 
Net income attributable to noncontrolling interests    (103)    (66)    (240)    (315)
        
Net income attributable to Amedisys, Inc.$  14,558  $  11,435  $  34,149  $  28,344 
        
Basic earnings per common share:
Net income attributable to Amedisys, Inc. common stockholders $  0.43  $  0.34  $  1.02  $  0.86 
     
Weighted average shares outstanding   33,838     33,309     33,640     33,142 
 
Diluted earnings per common share:
Net income attributable to Amedisys, Inc. common stockholders $  0.42  $  0.34  $  1.00  $  0.84 
     
Weighted average shares outstanding   34,363     33,823     34,255     33,699 
                
                


 
 
AMEDISYS, INC. AND SUBSIDIARIES 
CONDENSED CONSOLIDATED BALANCE SHEET 
(Amounts in thousands, except share data) 
 
 September 30, 2017  
 (Unaudited)   December 31, 2016 
ASSETS     
Current assets:      
Cash and cash equivalents$  66,114  $  30,197 
Patient accounts receivable, net of allowance for doubtful accounts of $19,933 and
   $17,716 
   177,402     166,056 
Prepaid expenses    9,770     7,397 
Other current assets   14,904     11,260 
   
Total current assets   268,190     214,910 
   
Property and equipment, net of accumulated depreciation of $148,301 and $138,650   32,695     36,999 
Goodwill   313,663     288,957 
Intangible assets, net of accumulated amortization of $29,932 and $27,864   44,845     46,755 
Deferred income taxes   91,160     107,940 
Other assets, net   48,976     38,468 
   
Total assets$  799,529  $  734,029 
   
LIABILITIES AND EQUITY  
Current liabilities:  
Accounts payable$  22,815  $  30,358 
Payroll and employee benefits   86,139     82,480 
Accrued expenses   83,516     63,290 
Current portion of long-term obligations   9,387     5,220 
   
Total current liabilities   201,857     181,348 
Long-term obligations, less current portion   80,523     87,809 
Other long-term obligations   3,930     3,730 
   
Total liabilities .   286,310     272,887 
   
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; 35,687,068 and
   35,253,577 shares issued; and 33,913,558 and 33,597,215 shares outstanding
   36     35 
Additional paid-in capital    561,380     537,472 
Treasury stock at cost, 1,773,510 and 1,656,362 shares of common stock   (53,228)    (46,774)
Accumulated other comprehensive income   15     15 
Retained earnings (deficit)   4,053     (30,545)
   
Total Amedisys, Inc. stockholders’ equity    512,256     460,203 
Noncontrolling interests   963     939 
   
Total equity   513,219     461,142 
   
Total liabilities and equity$  799,529  $  734,029 
   
   
   


 
 
AMEDISYS, INC. AND SUBSIDIARIES 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING, NET 
(Amounts in thousands, except statistical information) 
(Unaudited) 
 
     
 For the Three Month Period
Ended September 30,
 
  For the Nine Month Period
Ended September 30, 
  2017     2016     2017     2016   
Cash Flows from Operating Activities:       
Net income$  14,661  $  11,501  $  34,389  $  28,659 
Adjustments to reconcile net income to net cash provided by operating
   activities: 
       
Depreciation and amortization   4,185     5,214     13,139     14,662 
Provision for doubtful accounts    7,086     5,471     18,078     13,664 
Non-cash compensation   3,558     4,750     11,788     12,556 
401(k) employer match   2,180     1,694     6,547     5,134 
(Gain) loss on disposal of property and equipment    (169)    34     (22)    556 
Deferred income taxes   9,646     7,327     17,228     18,689 
Equity in earnings from equity method investments   (900)    (3,244)    (3,149)    (3,602)
Amortization of deferred debt issuance costs   185     185     555     555 
Return on equity investment    1,240     1,551     4,656     1,913 
Changes in operating assets and liabilities, net of impact of acquisitions:    
Patient accounts receivable   (11,099)    (15,758)    (28,924)    (46,107)
Other current assets   996     (4,681)    (5,896)    870 
Other assets   (11,054)    34     (12,202)    (11,909)
Accounts payable    (6,523)    (1,300)    (5,430)    7,308 
Securities Class Action Lawsuit settlement accrual, net   (28,712)    —      —      —  
Accrued expenses   25,327     (6,289)    22,584     (9,100)
Other long-term obligations   (406)    314     201     (150)
     
Net cash provided by operating activities    10,201     6,803     73,542     33,698 
     
Cash Flows from Investing Activities:    
Proceeds from sale of deferred compensation plan assets    57     —      622     230 
Purchase of investment    —      (318)    (436)    (750)
Purchases of property and equipment   (1,625)    (3,587)    (9,074)    (13,502)
Proceeds from sale of property and equipment    118     —      118     —  
Acquisitions of businesses, net of cash acquired   —      (3,744)    (24,128)    (31,378)
     
Net cash used in investing activities   (1,450)    (7,649)    (32,898)    (45,400)
     
Cash Flows from Financing Activities:    
Proceeds from issuance of stock upon exercise of stock options and warrants    11     —      4,214     —  
Proceeds from issuance of stock to employee stock purchase plan   611     611     1,798     1,818 
Shares withheld upon stock vesting    (728)    —      (6,454)    —  
Tax benefit from stock options exercised and restricted stock vesting    —      111     —      7,241 
Non-controlling interest distribution    (126)    (84)    (216)    (284)
Sale of non-controlling interest   —      405     —      405 
Proceeds from revolving line of credit   —      44,500     —      128,500 
Repayments of revolving line of credit    —      (44,500)    —      (128,500)
Principal payments of long-term obligations   (1,569)    (1,250)    (4,069)    (3,750)
Purchase of company stock   —      —      —      (12,315)
     
Net cash used in financing activities    (1,801)    (207)    (4,727)    (6,885)
     
Net increase (decrease) in cash and cash equivalents   6,950     (1,053)    35,917     (18,587)
Cash and cash equivalents at beginning of period    59,164     9,968     30,197     27,502 
     
Cash and cash equivalents at end of period$  66,114  $  8,915  $  66,114  $  8,915 
     
Supplemental Disclosures of Cash Flow Information:    
Cash paid for interest$  1,016  $  917  $  2,188  $  2,276 
     
Cash paid for income taxes, net of refunds received$  31  $  (67) $  315  $  758 
     
Days revenue outstanding, net (1)   40.7     40.0     40.7     40.0 
                
                

(1) Our calculation of days revenue outstanding, net at September 30, 2017 and 2016 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 periods ended September 30, 2017 and 2016, respectively.

 
 
AMEDISYS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION 
(Amounts in millions, except statistical information) 
(Unaudited)
 
Segment Information - Home Health 
 
   
 For the Three Month Period Ended September 30,  
  2017     2016   
Financial Information (in millions):     
Medicare$  191.4  $  203.9 
Non-Medicare   78.1     65.0 
      
Net service revenue    269.5     268.9 
Cost of service   168.2     162.4 
      
Gross margin   101.3     106.5 
Other operating expenses    77.2     77.4 
      
Operating income$  24.1  $  29.1 
      
Same Store Growth (1):  
Medicare revenue   (7%)    1%
Non-Medicare revenue   19%    4%
   
Medicare admissions   (3%)    1%
Total Episodic admissions   1%    3%
Total admissions    1%  %
   
Key Statistical Data - Total (2):  
   
Medicare:  
Admissions   46,823     47,625 
Recertifications   26,996     25,522 
      
Total volume    73,819     73,147 
   
Completed episodes    71,454     71,948 
Visits    1,259,156     1,266,780 
Average revenue per completed episode (3)$  2,820  $  2,841 
Visits per completed episode (4)   17.4     17.5 
   
Non-Medicare:  
Admissions   26,686     24,335 
Recertifications   12,263     9,479 
Visits    592,742     506,729 
   
Visiting Clinician Cost per Visit$  82.53  $  82.86 
Clinical Manager Cost per Visit$  8.30  $  8.72 
      
Total Cost per Visit$  90.83  $  91.58 
      
Visits    1,851,898     1,773,509 
        
        


   
   
   
 For the Nine Month Period Ended September 30,  
  2017     2016   
Financial Information (in millions):     
Medicare$  588.4  $  619.2 
Non-Medicare   226.1     198.0 
      
Net service revenue    814.5     817.2 
Cost of service   496.1     483.6 
   
Gross margin   318.4     333.6 
Other operating expenses    223.0     230.5 
   
Operating income$  95.4  $  103.1 
      
Same Store Growth (1):  
   
Medicare revenue   (5%)    3%
Non-Medicare revenue   14%    12%
   
Medicare admissions   (3%)    3%
Total Episodic admissions   1%    4%
Total admissions    1%    3%
   
Key Statistical Data - Total (2):  
   
Medicare:  
Admissions   143,711     147,025 
Recertifications   78,878     77,565 
      
Total volume    222,589     224,590 
   
Completed episodes    217,190     218,007 
Visits    3,794,001     3,893,568 
Average revenue per completed episode (3)$  2,811  $  2,835 
Visits per completed episode (4)   17.3     17.5 
   
Non-Medicare:  
Admissions   80,244     74,139 
Recertifications   33,949     28,945 
Visits    1,727,618     1,549,760 
   
Visiting Clinician Cost per Visit$  81.41  $  80.52 
Clinical Manager Cost per Visit$  8.42  $  8.31 
   
Total Cost per Visit$  89.83  $  88.83 
   
Visits    5,521,619     5,443,328 
        
        

(1) Same store information represents the percent increase (decrease) in our Medicare and Non-Medicare revenue or admissions for the period as a percent of the Medicare and Non-Medicare revenue or admissions 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.
(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.

Segment Information - Hospice

   
 For the Three Month Period Ended September 30,  
  2017     2016   
Financial Information (in millions):     
Medicare $  91.4  $  77.0 
Non-Medicare    5.1     5.0 
   
Net service revenue   96.5     82.0 
Cost of service    47.8     41.9 
   
Gross margin    48.7     40.1 
Other operating expenses   20.4     19.3 
   
Operating income $  28.3  $  20.8 
   
Same Store Growth (1):  
Medicare revenue    17%    12%
Non-Medicare revenue    (2%)    14%
Hospice admissions    7%    16%
Average daily census    14%    14%
   
Key Statistical Data - Total (2):  
Hospice admissions    6,257     5,751 
Average daily census    7,026     6,087 
Revenue per day, net $  149.25  $  146.49 
Cost of service per day $  73.99  $  74.77 
Average discharge length of stay   95     92 
  
 For the Nine Month Period Ended September 30,  
  2017     2016   
Financial Information (in millions):  
Medicare $  257.9  $  217.0 
Non-Medicare    14.9     13.8 
   
Net service revenue   272.8     230.8 
Cost of service    134.9     120.1 
   
Gross margin    137.9     110.7 
Other operating expenses   61.7     55.6 
   
Operating income $  76.2  $  55.1 
   
Same Store Growth (1):  
Medicare revenue    18%    16%
Non-Medicare revenue    7%    15%
Hospice admissions    13%    18%
Average daily census    15%    17%
   
Key Statistical Data -Total (2):  
Hospice admissions    19,010     16,757 
Average daily census    6,705     5,776 
Revenue per day, net $  149.01  $  145.86 
Cost of service per day $  73.72  $  75.89 
Average discharge length of stay   92     94 

(1) Same store information represents 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.

Segment Information - Personal Care

   
 For the Three Month Period Ended September 30,  
  2017    2016  
Financial Information (in millions):      
Medicare$  $ 
Non-Medicare   14.2     10.7 
       
Net service revenue   14.2     10.7 
Cost of service    10.6     7.8 
       
Gross margin    3.6     2.9 
Other operating expenses    3.6     2.4 
       
Operating income$  $  0.5 
       
Key Statistical Data:  
Billable hours   616,036     448,133 
Clients served   8,145     7,132 
Shifts   281,904     203,465 
Revenue per hour$  23.00  $  23.70 
Revenue per shift$  50.26  $  52.19 
Hours per shift    2.2     2.2 
  
 For the Nine Month Period Ended September 30,  
  2017    2016  
Financial Information (in millions):      
Medicare$  $ 
Non-Medicare   42.1     23.2 
       
Net service revenue   42.1     23.2 
Cost of service    31.2     16.8 
       
Gross margin    10.9     6.4 
Other operating expenses    10.0     5.1 
       
Operating income$  0.9  $  1.3 
       
Key Statistical Data:  
Billable hours   1,822,653     990,389 
Clients served   11,372     8,969 
Shifts   830,151     451,421 
Revenue per hour$  23.13  $  23.41 
Revenue per shift$  50.77  $  51.36 
Hours per shift    2.2     2.2 

Segment Information - Corporate

   
 For the Three Month Period Ended September 30,  
  2017     2016   
Financial Information (in millions):      
Other operating expenses$  25.9  $  32.7 
Depreciation and amortization    3.1     3.3 
       
Total operating expenses$  29.0  $  36.0 
       
        
 For the Nine Month Period Ended September 30,  
  2017     2016   
Financial Information (in millions):      
Other operating expenses$  85.4  $  106.4 
Depreciation and amortization    9.6     9.3 
       
Total operating expenses before Securities Class Action Lawsuit settlement, net    95.0     115.7 
Securities Class Action Lawsuit settlement, net   28.7     —  
       
Total operating expenses$  123.7  $  115.7 
       
       
       


AMEDISYS, INC. AND SUBSIDIARIES 
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES 
(Amounts in thousands) 
(Unaudited)
 
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”):
 
 
 
     
 For the Three Month Period
Ended September 30,  
   For the Nine Month Period
Ended September 30, 
  2017     2016     2017     2016  
Net income attributable to Amedisys, Inc.$  14,558  $  11,435  $  34,149  $  28,344
Add:    
Income tax expense   9,364     6,693     17,324     18,323
Interest expense, net   1,291     1,122     3,496     3,506
Depreciation and amortization   4,185     5,214     13,139     14,662
Certain items (1)    7,590     1,158     37,014     14,560
Interest component of certain items (1)   (95)    —      (95)    — 
         
Adjusted EBITDA (2) (6)$  36,893  $  25,622  $  105,027  $  79,395
         
   
Adjusted Net Service Revenue Reconciliation:  
   
 For the Three Month Period
Ended September 30,  
  For the Nine Month Period
Ended September 30, 
  2017     2016     2017     2016  
Net service revenue$  380,163  $  361,595  $  1,129,442  $  1,071,158
Add:    
Certain items (1)    6,506     —      6,506     948
         
Adjusted net service revenue (3) (6)$  386,669  $  361,595  $  1,135,948  $  1,072,106
         
   
Adjusted Net Income Attributable to Amedisys, Inc. Reconciliation:  
   
 For the Three Month Period
Ended September 30,
 
  For the Nine Month Period
Ended September 30, 
  2017     2016     2017     2016  
Net income attributable to Amedisys, Inc.$  14,558  $  11,435  $  34,149  $  28,344
Add:        
Certain items (1)    4,592     700     22,394     8,809
         
Adjusted net income attributable to Amedisys, Inc. (4) (6) $  19,150  $  12,135  $  56,543  $  37,153
         
   
Adjusted Net Income Attributable to Amedisys, Inc. per Diluted Share:  
   
 For the Three Month Period
Ended September 30,  
  For the Nine Month Period
Ended September 30, 
  2017     2016     2017     2016  
Net income attributable to Amedisys, Inc. common stockholders per diluted share$  0.42  $  0.34  $  1.00  $  0.84
Add:    
Certain items (1)    0.13     0.02     0.65     0.26
         
Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (5) (6) $  0.56  $  0.36  $  1.65  $  1.10
     

(1) The following details the certain items for the three and nine month periods ended September 30, 2017 and 2016:

Certain Items:

   
 For the Three Month Period
Ended September 30, 2017
 
  For the Nine Month Period
Ended September 30, 2017 
 (Income) Expense    (Income) Expense 
Certain Items Impacting Net Service Revenue:      
Florida ZPIC audit $  6,506   $  6,506 
Certain Items Impacting Operating Expenses:      
Acquisition costs    —       976 
Legal fees - non-routine    176      1,410 
Securities Class Action Lawsuit settlement accrual, net   —       28,712 
Restructuring activity   1,670      1,670 
Data center relocation    —       940 
Certain Items Impacting Total Other Income (Expense):      
Legal settlements   (647)     (2,014)
Miscellaneous, other (income) expense, net   (115)     (1,186)
       
Total $  7,590   $  37,014 
       
Net of tax $  4,592   $  22,394 
       
Diluted EPS $  0.13   $  0.65 
       


   
 For the Three Month Period
Ended September 30, 2016
 
 For the Nine Month Period
Ended September 30, 2016 
 (Income) Expense   (Income) Expense 
Certain Items Impacting Net Service Revenue:     
Third party audit reserve$  —   $  948 
Certain Items Impacting Operating Expenses:     
HCHB implementation    1,993     7,025 
Acquisition costs    467     2,509 
Legal fees - non-routine    374     2,350 
Restructuring activity   1,965     5,213 
Data center relocation    —      456 
Disaster relief    338     338 
Certain Items Impacting Total Other Income (Expense):     
Legal settlements   (1,242)    (2,048)
Miscellaneous, other (income) expense, net   (2,737)    (2,231)
      
Total $  1,158  $  14,560 
      
Net of tax $  700  $  8,809 
      
Diluted EPS $  0.02  $  0.26 
      

(2) Adjusted EBITDA is defined as net income attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization, excluding certain items as described in footnote 1.
(3) Adjusted net service revenue is defined as net service revenue plus certain items as described in footnote 1.
(4) Adjusted net income attributable to Amedisys, Inc. is defined as net income attributable to Amedisys, Inc. calculated in accordance with GAAP excluding certain items as described in footnote 1.
(5) Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share is defined as diluted income per share calculated in accordance with GAAP excluding the earnings per share effect of certain items as described in footnote 1.
(6) 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 or other measure calculated in accordance with GAAP. 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.

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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