Press Release

Amedisys Reports First Quarter 2018 Financial Results and Reaffirms 2018 Guidance

Company Release - 5/7/2018 5:00 PM ET

BATON ROUGE, La., May 07, 2018 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ:AMED) today reported its financial results for the three month period ended March 31, 2018.

Three Month Periods Ended March 31, 2018 and 2017

  • Net service revenue increased $34.6 million to $399.3 million compared to $364.7 million in 2017(1).

  • Net income attributable to Amedisys, Inc. of $27.2 million compared to $15.1 million in 2017.

  • Net income attributable to Amedisys, Inc. per diluted share of $0.79 compared to $0.44 in 2017.

Adjusted Quarterly Results*

  • Adjusted EBITDA of $41.7 million compared to $32.0 million in 2017.

  • Adjusted net income attributable to Amedisys, Inc. of $27.3 million compared to $16.0 million in 2017.

  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $0.79 compared to $0.47 in 2017.

*   See pages 8 and 9 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

(1) Subsequent to our adoption of Accounting Standards Updates 2014-09 and 2015-14 on January 1, 2018, using the full retrospective method, all amounts previously classified as provision for doubtful accounts are now classified as implicit price concessions in determining the transaction price of our net service revenue.

Paul B. Kusserow, President and Chief Executive Officer stated, “I am proud of our first quarter results as once again we have made great progress in all four key areas of our strategy. Total home health admissions and volumes are moving in the right direction as our business development staffing strategy takes hold. Continued strong performance from our hospice segment, personal care growth and disciplined cost controls have helped to deliver significant increases in revenue, EBITDA and earnings per share as compared to the first quarter of 2017. We have once again improved our position as an industry leader in quality, having increased our STARs score for the twelfth straight quarter. Our continued focus on our employees can be seen in our stabilized turnover rates and the investment we have made in operational efficiency has resulted in increased productivity from our clinical staff. We will continue to focus on organic growth in all three of lines of business throughout the remainder of 2018 and have a balance sheet that provides flexibility to execute upon a range of capital allocation priorities. A special thanks to all of our nearly 18,000 employees that helped to deliver such an impressive quarter.”

2018 Guidance

  • Net service revenue is anticipated to be in the range of $1.60 billion to $1.64 billion.

  • Adjusted EBITDA is anticipated to be in the range of $158 million to $163 million.

  • Adjusted diluted earnings per share is anticipated to be in the range of $2.97 to $3.08 based on an estimated 34.85 million shares outstanding.

This guidance excludes the effects of any future acquisitions, if any are made.

We urge caution in considering the current trends and 2018 guidance disclosed in this press release. The home health and hospice industry is highly competitive and subject to intensive regulations, and trends and guidance 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, 2017, 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 Tuesday, May 8, 2018, at 11:00 a.m. ET to discuss its first 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 June 8, 2018 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13679111.

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 income attributable to Amedisys, Inc., defined as net income attributable to Amedisys, Inc. excluding certain items; and (3) 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. We partner with 3,000 hospitals and 59,000 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 17,900 employees, in 420 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 369,000 patients and clients 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 CastilleKendra Kimmons 
 Managing Director, Treasury/FinanceVice President, Marketing & Communications 
 (855) 259-2046(225) 299-3720 
 IR@amedisys.comkendra.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 March 31,  
 2018 2017  
Net service revenue$  399,262  $  364,661 
Cost of service, excluding depreciation and amortization   238,309     216,329 
General and administrative expenses:  
Salaries and benefits   75,631     74,459 
Non-cash compensation   4,044     3,874 
Other   41,680     40,417 
Depreciation and amortization   3,593     4,417 
Operating expenses   363,257     339,496 
Operating income   36,005     25,165 
Other income (expense):  
Interest income   120     19 
Interest expense   (1,703)    (1,068)
Equity in earnings (loss) from equity method investments   1,860     (106)
Miscellaneous, net   601     1,112 
Total other income (expense), net   878     (43)
Income before income taxes   36,883     25,122 
Income tax expense   (9,563)    (9,923)
Net income   27,320     15,199 
Net income attributable to noncontrolling interests   (161)    (69)
Net income attributable to Amedisys, Inc.$  27,159  $  15,130 
Basic earnings per common share:     
Net income attributable to Amedisys, Inc. common stockholders$  0.80  $  0.45 
Weighted average shares outstanding   33,971     33,443 
Diluted earnings per common share:  
Net income attributable to Amedisys, Inc. common stockholders$  0.79  $  0.44 
Weighted average shares outstanding   34,592     34,073 
        


 
AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Amounts in thousands, except share data)
   
 March 31, 2018 
 December 31, 2017
 (Unaudited)
  
ASSETS  
Current assets:  
Cash and cash equivalents$120,005  $  86,363 
Patient accounts receivable, net 192,936      201,196 
Prepaid expenses 12,430      7,329 
Other current assets 18,148   16,268 
Total current assets 343,519                  311,156 
Property and equipment, net of accumulated depreciation of $130,877 and $146,814  28,213   31,122 
Goodwill 322,199      319,949 
Intangible assets, net of accumulated amortization of $31,288 and $30,610 45,382   46,061 
Deferred income taxes 53,119         56,064 
Other assets, net  49,856   49,130 
Total assets$842,288  $  813,482 
LIABILITIES AND EQUITY     
Current liabilities:  
Accounts payable$        22,966  $  25,384 
Payroll and employee benefits         88,585   89,936 
Accrued expenses 88,842               89,104 
Current portion of long-term obligations 10,417        10,638 
Total current liabilities 210,810      215,062 
Long-term obligations, less current portion  75,782                 78,203 
Other long-term obligations    6,138             3,791 
Total liabilities 292,730   297,056 
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; 35,861,469 and 35,747,134 shares issued; and 34,056,627 and 33,964,767 shares outstanding  35           35 
Additional paid-in capital 575,926   568,780 
Treasury stock at cost, 1,804,842 and 1,782,367 shares of common stock (55,019)      (53,713)
Accumulated other comprehensive income      15        15 
Retained earnings 27,363               204 
Total Amedisys, Inc. stockholders’ equity 548,320   515,321 
Noncontrolling interests 1,238                     1,105 
Total equity 549,558   516,426 
Total liabilities and equity$842,288  $  813,482 
      


 
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 March 31, 
  2018    2017  
Cash Flows from Operating Activities:       
Net income$  27,320  $  15,199 
Adjustments to reconcile net income to net cash provided by operating activities:  
Depreciation and amortization   3,593     4,417 
Non-cash compensation   4,044     3,874 
401(k) employer match   2,567     2,227 
Loss (gain) on disposal of property and equipment   563     (16)
Deferred income taxes   2,945     9,445 
Equity in (earnings) loss from equity method investments   (1,860)    106 
Amortization of deferred debt issuance costs   178     185 
Return on equity investment   625     150 
Changes in operating assets and liabilities, net of impact of acquisitions:  
Patient accounts receivable   8,260     (6,152)
Other current assets   (6,982)    (3,403)
Other assets   46     (990)
Accounts payable   (1,523)    93 
Accrued expenses   (1,807)    1,386 
Other long-term obligations   2,348     576 
Net cash provided by operating activities   40,317     27,097 
Cash Flows from Investing Activities:  
Proceeds from sale of deferred compensation plan assets   462     565 
Proceeds from the sale of property and equipment   5     —  
Purchase of investment   —      (256)
Purchases of property and equipment   (1,462)    (4,385)
Acquisitions of businesses, net of cash acquired   (2,250)    (4,099)
Net cash used in investing activities   (3,245)    (8,175)
Cash Flows from Financing Activities:  
Proceeds from issuance of stock upon exercise of stock options and warrants   125     653 
Proceeds from issuance of stock to employee stock purchase plan   597     612 
Shares withheld upon stock vesting   (1,305)    (758)
Non-controlling interest distribution   (28)    (42)
Principal payments of long-term obligations   (2,819)    (1,250)
Net cash used in financing activities   (3,430)    (785)
Net increase in cash and cash equivalents   33,642     18,137 
Cash and cash equivalents at beginning of period   86,363     30,197 
Cash and cash equivalents at end of period$  120,005  $  48,334 
Supplemental Disclosures of Cash Flow Information:       
Cash paid for interest$  1,065  $  706 
Cash paid for income taxes, net of refunds received$  2,813  $  284 
Days revenue outstanding, net (1)   41.4     40.5 

(1)      Our calculation of days revenue outstanding, net at March 31, 2018 and 2017 is derived by dividing our ending net patient accounts receivable by our average daily net patient revenue for the three month period ended March 31, 2018 and 2017, respectively.

 
AMEDISYS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Amounts in millions, except statistical information)
(Unaudited)
 
Segment Information - Home Health
   
 For the Three Month Period Ended March 31, 
  2018    2017  
Financial Information (in millions):       
Medicare$  205.0  $  198.7 
Non-Medicare   79.1     68.9 
Net service revenue   284.1     267.6 
Cost of service   174.4     163.0 
Gross margin   109.7     104.6 
Other operating expenses   68.8     68.9 
Operating income$  40.9  $  35.7 
Same Store Growth (1):     
Medicare revenue   5%    (3%)
Non-Medicare revenue   14%    11%
Total admissions   4%    2%
Total volume (2)   7%    1%
Total Episodic admissions (3)   3%    3%
Total Episodic volume (4)   6%    2%
Key Statistical Data - Total (5):  
Medicare:  
Admissions   49,455     49,628 
Recertifications   27,236     25,043 
Total volume   76,691     74,671 
Completed episodes   72,836     71,864 
Visits   1,314,126     1,263,098 
Average revenue per completed episode (6)$  2,792  $  2,782 
Visits per completed episode (7)   17.2     16.9 
Non-Medicare:  
Admissions   29,889     27,333 
Recertifications   12,432     10,224 
Total volume   42,321     37,557 
Visits   660,933     555,548 
Total (5):  
Visiting Clinician Cost per Visit$  80.34  $  81.08 
Clinical Manager Cost per Visit$  7.99  $  8.53 
Total Cost per Visit$  88.33  $  89.61 
Visits   1,975,059     1,818,646 

(1)      Same store information represents the percent increase (decrease) in our Medicare, Non-Medicare, Total and Episodic revenue, admissions or volume for the period as a percent of the Medicare, Non-Medicare, Total and Episodic, admissions or volume of the prior period.
(2)      Total volume includes all admissions and recertifications.
(3)      Total Episodic admissions include admissions for Medicare and Non-Medicare payors that bill on a 60-day episode of care basis.
(4)      Total Episodic volume includes admissions and recertifications for Medicare and Non-Medicare payors that bill on a 60-day episode of care basis.
(5)      Total includes acquisitions.
(6)      Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare completed episode of care.
(7)      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 March 31, 
  2018    2017  
Financial Information (in millions):     
Medicare$  91.8  $  80.7 
Non-Medicare   5.5     2.9 
Net service revenue   97.3     83.6 
Cost of service   50.1     42.9 
Gross margin   47.2     40.7 
Other operating expenses   20.2     18.3 
Operating income$  27.0  $  22.4 
Same Store Growth (1):     
Medicare revenue   12%    17%
Non-Medicare revenue 84%    (23%)
Hospice admissions   5%    20%
Average daily census   12%    16%
Key Statistical Data - Total (2):  
Hospice admissions   6,933     6,505 
Average daily census   7,214     6,365 
Revenue per day, net$  149.80  $  145.99 
Cost of service per day$  77.17  $  75.03 
Average discharge length of stay   97     92 

(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 March 31,  
  2018    2017  
Financial Information (in millions):    
Medicare$  —  $  —  
Non-Medicare   17.9    13.5 
Net service revenue   17.9    13.5 
Cost of service   13.8    10.4 
Gross margin   4.1    3.1 
Other operating expenses   3.3    3.3 
Operating income (loss)$  0.8 $  (0.2)
Key Statistical Data:    
Billable hours   749,953    588,216 
Clients served   12,536    8,543 
Shifts   348,166    265,117 
Revenue per hour   23.85    22.97 
Revenue per shift   51.36    50.95 
Hours per shift   2.2    2.2 


 
Segment Information - Corporate
   
 For the Three Month Period Ended March 31,  
  2018    2017  
Financial Information (in millions):     
Other operating expenses$30.2 $  29.5
Depreciation and amortization   2.5    3.2
Total operating expenses$ 32.7 $  32.7
     


 
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 March 31,  
  2018    2017  
Net income attributable to Amedisys, Inc$  27,159  $  15,130
Add:  
Income tax expense   9,563     9,923
Interest expense, net   1,583     1,049
Depreciation and amortization   3,593     4,417
Certain items (1)   188     1,466
Interest component of certain items (1)   (383)    — 
Adjusted EBITDA (2) (5)$  41,703  $  31,985
      


Adjusted Net Income Attributable to Amedisys, Inc. Reconciliation:
   
 For the Three Month Period Ended March 31,  
  2018    2017  
Net income attributable to Amedisys, Inc.$  27,159 $  15,130
Add:    
Certain items (1)   139    887
Adjusted net income attributable to Amedisys, Inc. (3) (5)$  27,298 $  16,017
     


Adjusted Net Income Attributable to Amedisys, Inc. per Diluted Share:
   
 For the Three Month Period Ended March 31, 
  2018    2017  
Net income attributable to Amedisys, Inc. common stockholders per diluted share$  0.79 $  0.44
Add:  
Certain items (1)   —     0.03
Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (4) (5)$  0.79 $  0.47
     

(1)      The following details the certain items for the three month periods ended March 31, 2018 and 2017:

Certain Items:
   
 For the Three Month Period
Ended March 31, 2018

 For the Three Month Period
Ended March 31, 2017
 
 (Income) Expense
 (Income) Expense  
Certain Items Impacting Operating Expenses:     
Acquisition costs$  435  $  682 
Legal fees - non-routine   562     123 
Data center relocation   —      714 
Certain Items Impacting Total Other Income (Expense):  
Legal settlements   —      (674)
Miscellaneous, other (income) expense, net   (809)    621 
Total$  188  $  1,466 
Net of tax$  139  $  887 
Diluted EPS$  —   $  0.03 
      

(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 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.
(4)      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.
(5)      Adjusted EBITDA, 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.

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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