Press Release

Amedisys Reports Third Quarter 2018 Financial Results and Updates 2018 Guidance

Company Release - 10/29/2018 5:00 PM ET

BATON ROUGE, La., Oct. 29, 2018 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three and nine-month period ended September 30, 2018.

Three Month Periods Ended September 30, 2018 and 2017

  • Net service revenue increased $43.6 million to $417.3 million compared to $373.7 million in 2017 (1).
  • Net income attributable to Amedisys, Inc. of $31.4 million compared to $14.6 million in 2017.
  • Net income attributable to Amedisys, Inc. per diluted share of $0.96 per diluted share compared to $0.42 in 2017.

Adjusted Quarterly Results*

  • Adjusted EBITDA of $45.3 million compared to $36.9 million in 2017.
  • Adjusted net service revenue of $417.3 million compared to $380.2 million in 2017.
  • Adjusted net income attributable to Amedisys, Inc. of $30.9 million compared to $19.2 million in 2017.
  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $0.95 compared to $0.56 in 2017.

Nine Month Periods Ended September 30, 2018 and 2017

  • Net service revenue increased $114.9 million to $1,228.2 million compared to $1,113.3 million in 2017 (1).
  • Net income attributable to Amedisys, Inc. of $91.9 million compared to $34.1 million in 2017.
  • Net income attributable to Amedisys, Inc. per diluted share of $2.71 per diluted share compared to $1.00 in 2017.

Adjusted Year to Date Results*

  • Adjusted EBITDA of $136.7 million compared to $105.0 million in 2017.
  • Adjusted net service revenue of $1,229.9 million compared to $1,119.8 million in 2017.
  • Adjusted net income attributable to Amedisys, Inc. of $92.3 million compared to $56.5 million in 2017.
  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $2.73 compared to $1.65 in 2017.

* See below 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, amounts previously classified as provision for doubtful accounts are now classified as 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 third quarter results and the strong execution of our team. We are pleased with the growth trends we continue to see in home health. Our performance in home health helped drive our significant results this quarter and I am delighted with the progress the home health segment has made this year. Our hospice segment continues its stellar performance, with another quarter of double digit ADC growth. We look forward to welcoming all of our new Compassionate Care Hospice team members to the Amedisys family once our deal closes early next year and are excited about the continued growth potential within our hospice segment. Our personal care segment continues with their impressive integration engine and has built out a platform for growth within Massachusetts and beyond. Above all else, our clinical quality metrics continue to be at, or near, the top of the industry in both home health and hospice. Providing our clinically distinct care to as many patients wherever they call home is and will always be our first priority. Finally, thanks to our team of over 18,500 employees for continuing to do all that you do to drive such impressive results and provide such incredible care.”

Updated 2018 Guidance

  • Net service revenue is anticipated to be in the range of $1.65 billion to $1.67 billion.

  • Adjusted EBITDA is anticipated to be in the range of $177 million to $180 million.

  • Adjusted diluted earnings per share is anticipated to be in the range of $3.54 to $3.60 based on an estimated 33.50 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 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, October 30, 2018, 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 November 30, 2018 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13684177.

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 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 18,500 employees, in 421 care centers within 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. 
 Nick MuscatoKendra Kimmons 
 Vice President, Strategic FinanceVice President, Marketing & Communications 
 (855) 259-2046(225) 299-3720 
 IR@amedisys.com kendra.kimmons@amedisys.com  


AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
(Unaudited)

 For the Three-Month
Periods Ended September 30

 For the Nine-Month
Periods Ended September 30
 
  2018     2017     2018     2017   
Net service revenue$   417,335  $   373,704  $   1,228,200  $   1,113,311 
Cost of service, excluding depreciation and amortization   249,739     227,269     730,612     664,139 
General and administrative expenses:    
Salaries and benefits   79,367     77,130     232,213     226,532 
Non-cash compensation   4,842     3,558     12,653     11,788 
Other   40,335     38,189     124,119     120,223 
Depreciation and amortization   3,164     4,185     9,882     13,139 
Securities Class Action Lawsuit settlement, net      —     —     28,712 
                
Operating expenses   377,447     350,331     1,109,479     1,064,533 
                
Operating income   39,888     23,373     118,721     48,778 
Other income (expense):    
Interest income   29     44     263     104 
Interest expense   (1,991)    (1,335)    (5,834)    (3,600)
Equity in earnings from equity method investments   1,625     900     6,461     3,149 
Miscellaneous, net   1,822     1,043     2,782     3,282 
              
     Total other income, net   1,485     652     3,672     2,935 
              
Income before income taxes   41,373     24,025     122,393     51,713 
Income tax expense   (9,825)    (9,364)    (29,984)    (17,324)
              
Net income   31,548     14,661     92,409     34,389 
Net income attributable to noncontrolling interests   (171)    (103)    (524)    (240)
              
Net income attributable to Amedisys, Inc.$  31,377  $  14,558  $  91,885  $  34,149 
                
Basic earnings per common share:    
Net income attributable to Amedisys, Inc. common stockholders$  0.99  $  0.43  $  2.78  $  1.02 
Weighted average shares outstanding   31,815     33,838     33,075     33,640 
Diluted earnings per common share:    
Net income attributable to Amedisys, Inc. common stockholders$  0.96  $  0.42  $  2.71  $  1.00 
Weighted average shares outstanding   32,691     34,363     33,852     34,255 
                

AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)

 September 30,
2018
(unaudited)
 
 December 31,
2017
 
ASSETS     
Current assets:  
Cash and cash equivalents$    14,010  $    86,363 
Patient accounts receivable   195,030     201,196 
Prepaid expenses   11,679     7,329 
Other current assets   11,949     16,268 
        
     Total current assets   232,668     311,156 
Property and equipment, net of accumulated depreciation of $93,432 and $146,814   30,215     31,122 
Goodwill   324,145     319,949 
Intangible assets, net of accumulated amortization of $32,443 and $30,610   44,309     46,061 
Deferred income taxes   41,149     56,064 
Other assets   53,406     49,130 
      
     Total assets$  725,892  $  813,482 
          
LIABILITIES AND EQUITY  
Current liabilities:  
Accounts payable$  24,519  $  25,384 
Payroll and employee benefits   92,385     89,936 
Accrued expenses   101,177     89,104 
Current portion of long-term obligations   1,209     10,638 
      
     Total current liabilities   219,290     215,062 
Long-term obligations, less current portion   54,853     78,203 
Other long-term obligations   6,253     3,791 
      
     Total liabilities   280,396     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; 36,146,649 and 35,747,134 shares issued; and 31,877,278 and 33,964,767 shares outstanding   36     35 
Additional paid-in capital   592,539     568,780 
Treasury stock, at cost 4,269,371 and 1,782,367 shares of common stock   (240,536)    (53,713)
Accumulated other comprehensive income   15     15 
Retained earnings   92,089     204 
      
     Total Amedisys, Inc. stockholders’ equity   444,143     515,321 
Noncontrolling interests   1,353     1,105 
      
     Total equity   445,496     516,426 
      
     Total liabilities and equity$  725,892  $  813,482 
      

AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING
(Amounts in thousands, except statistical information)
(Unaudited)

 For the Three-Month
Periods Ended September 30
 For the Nine-Month
Periods Ended September 30
 
  2018    2017    2018     2017  
Cash Flows from Operating Activities:               
Net income$  31,548  $  14,661  $  92,409  $  34,389 
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization   3,164     4,185     9,882     13,139 
Non-cash compensation   4,842     3,558     12,653     11,788 
401(k) employer match   2,040     2,180     6,934     6,547 
Loss (gain) on disposal of property and equipment   88     (169)    738     (22)
Deferred income taxes   5,771     9,646     14,916     17,228 
Equity in earnings from equity method investments   (1,625)    (900)    (6,461)    (3,149)
Amortization of deferred debt issuance costs/debt discount   203     185     596     555 
Return on equity investment   2,169     1,240     4,373     4,656 
Changes in operating assets and liabilities, net of impact of acquisitions:    
Patient accounts receivable   2,562     (4,013)    6,166     (10,846)
Other current assets   11,648     996     (32)    (5,896)
Other assets   38     (11,054)    726     (12,202)
Accounts payable   (4,293)    (6,523)    (670)    (5,430)
Securities Class Action Lawsuit settlement accrual, net   —     (28,712)    —     — 
Accrued expenses   10,210     25,327     14,758     22,584 
Other long-term obligations   115     (406)    2,462     201 
                
Net cash provided by operating activities   68,480     10,201     159,450     73,542 
                
Cash Flows from Investing Activities:    
Proceeds from sale of deferred compensation plan assets   92     57     563     622 
Proceeds from the sale of property and equipment   40     118     51     118 
Investments in equity method investees   (3,477)    —     (3,477)    (436)
Purchases of property and equipment   (4,073)    (1,625)    (5,684)    (9,074)
Acquisitions of businesses, net of cash acquired   —     —     (4,074)    (24,128)
                
Net cash used in investing activities   (7,418)    (1,450)    (12,621)    (32,898)
                
Cash Flows from Financing Activities:    
Proceeds from issuance of stock upon exercise of stock options and warrants   140     11     2,749     4,214 
Proceeds from issuance of stock to employee stock purchase plan   630     611     1,787     1,798 
Shares withheld upon stock vesting   (2,589)    (728)    (5,421)    (6,454)
Noncontrolling interest distribution   (180)    (126)    (530)    (216)
Proceeds from borrowings under revolving line of credit   —     —     127,500     — 
Repayments of borrowings under revolving line of credit   (70,000)    —     (70,000)    — 
Principal payments of long-term obligations   (596)    (1,569)    (91,071)    (4,069)
Debt issuance costs   —     —     (2,433)    — 
Purchase of company stock   —     —     (181,402)    — 
Repurchase of noncontrolling interest   (361)    —     (361)    — 
                
Net cash used in financing activities   (72,956)    (1,801)    (219,182)    (4,727)
                
Net (decrease) increase in cash and cash equivalents   (11,894)    6,950     (72,353)    35,917 
Cash and cash equivalents at beginning of period   25,904     59,164     86,363     30,197 
                
Cash and cash equivalents at end of period$    14,010  $    66,114  $    14,010  $    66,114 
                
Supplemental Disclosures of Cash Flow Information:    
Cash paid for interest$  909  $  1,016  $  2,989  $  2,188 
                
Cash paid for income taxes, net of refunds received$  4,868  $  31  $  11,017  $  315 
                
Days revenue outstanding (1)   40.6     40.7     40.6     40.7 
                

(1)      Our calculation of days revenue outstanding at September 30, 2018 and 2017 is derived by dividing our ending patient accounts receivable by our average daily patient revenue for the three month periods ended September 30, 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 Periods
Ended September 30,
 
  2018     2017   
Financial Information (in millions):       
Medicare$  208.0  $  191.4 
Non-Medicare   86.9     72.7 
        
Net service revenue   294.9     264.1 
Cost of service   181.8     168.3 
      
Gross margin   113.1     95.8 
Other operating expenses   69.6     71.7 
      
Operating income$  43.5  $  24.1 
      
   
Same Store Growth (1):  
Medicare revenue   10%    (7%)
Non-Medicare revenue   20%    18%
Total admissions   4%    1%
Total volume (2)   6%    5%
Total Episodic admissions (3)   3%    1%
Total Episodic volume (4)   5%    3%
Key Statistical Data - Total (5):  
Medicare:  
Admissions   46,371     46,823 
Recertifications   28,551     26,996 
      
Total volume   74,922     73,819 
Completed episodes   73,114     71,454 
Visits    1,301,090      1,259,156 
Average revenue per completed episode (6)$  2,855  $  2,820 
Visits per completed episode (7)   17.6     17.4 
Non-Medicare:  
Admissions   29,325     26,686 
Recertifications   14,539     12,263 
      
Total volume   43,864     38,949 
Visits   698,181     592,742 
Total (5):  
Visiting Clinician Cost per Visit$  82.78  $  82.53 
Clinical Manager Cost per Visit   8.18     8.30 
      
Total Cost per Visit$  90.96  $  90.83 
Visits   1,999,271     1,851,898 


 For the Nine-
Month Periods
Ended September 30,
 
  2018     2017   
Financial Information (in millions):     
Medicare$  619.3  $  588.4 
Non-Medicare   251.2     213.6 
      
Net service revenue   870.5     802.0 
Cost of service   532.7     496.1 
      
Gross margin   337.8     305.9 
Other operating expenses   207.6     210.5 
      
Operating income$  130.2  $  95.4 
      
   
Same Store Growth (1):  
Medicare revenue   7%    (5%)
Non-Medicare revenue   18%    14%
Total admissions   4%    1%
Total volume (2)   7%    3%
Total Episodic admissions (3)   3%    1%
Total Episodic volume (4)   6%    3%
Key Statistical Data - Total (5):  
Medicare:  
Admissions   142,884     143,711 
Recertifications   84,218     78,878 
      
Total volume   227,102     222,589 
Completed episodes   220,726     217,190 
Visits    3,933,290      3,794,001 
Average revenue per completed episode (6)$  2,841  $  2,811 
Visits per completed episode (7)   17.5     17.3 
Non-Medicare:  
Admissions   88,485     80,244 
Recertifications   40,862     33,949 
      
Total volume   129,347     114,193 
Visits   2,049,662     1,727,618 
Total (5):  
Visiting Clinician Cost per Visit$  81.06  $  81.41 
Clinical Manager Cost per Visit   7.98     8.42 
      
Total Cost per Visit$  89.04  $  89.83 
Visits   5,982,952     5,521,619 
        

(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 revenue, admissions or volume of the prior period.
(2)      Total volume includes all admissions and recertifications.
(3)      Total Episodic admissions includes 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 Periods
Ended September 30,
 
  2018     2017   
Financial Information (in millions):     
Medicare$  98.0  $    91.4 
Non-Medicare   5.4     4.5 
      
Net service revenue     103.4     95.9 
Cost of service   53.4     48.4 
      
Gross margin   50.0     47.5 
Other operating expenses   21.7     19.2 
      
Operating income$  28.3  $  28.3 
      
Same Store Growth (1):  
Medicare revenue   7%    17%
Non-Medicare revenue   19%    11%
Hospice admissions   8%    7%
Average daily census   11%    14%
Key Statistical Data - Total (2):  
Hospice admissions   6,765     6,257 
Average daily census   7,768     7,026 
Revenue per day, net$  144.71  $  148.43 
Cost of service per day$  74.72  $  74.96 
Average discharge length of stay   101     95 
  
 For the Nine-
Month Periods
Ended September 30,
 
  2018     2017   
Financial Information (in millions):     
Medicare$    286.7  $    257.9 
Non-Medicare   15.4     11.9 
      
Net service revenue   302.1     269.8 
Cost of service   155.2     136.7 
      
Gross margin   146.9     133.1 
Other operating expenses   62.5     56.9 
      
Operating income$  84.4  $  76.2 
      
Same Store Growth (1):  
Medicare revenue   11%    18%
Non-Medicare revenue   28%    (1%)
Hospice admissions   7%    13%
Average daily census   12%    15%
Key Statistical Data - Total (2):  
Hospice admissions   20,444     19,010 
Average daily census   7,514     6,705 
Revenue per day, net$  147.28  $  147.43 
Cost of service per day$  75.65  $  74.78 
Average discharge length of stay   98     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 Periods
Ended September 30,
 
   2018      2017   
Financial Information (in millions):    
Medicare$  — $  —
Non-Medicare   19.0    13.7
     
Net service revenue   19.0    13.7
Cost of service   14.5    10.6
     
Gross margin   4.5    3.1
Other operating expenses   3.1    3.1
     
Operating income$  1.4 $  —
   
Key Statistical Data:  
Billable hours   810,427    616,036
Clients served   12,380    7,978
Shifts   357,382    281,904
Revenue per hour$  23.40 $  22.21
Revenue per shift$  53.06 $  48.54
Hours per shift   2.3    2.2
  
 For the Nine-
Month Periods
Ended September 30,
 
  2018    2017  
Financial Information (in millions):    
Medicare$  — $  —
Non-Medicare   55.6    41.5
     
Net service revenue   55.6    41.5
Cost of service   42.7    31.3
     
Gross margin   12.9    10.2
Other operating expenses   9.7    9.3
     
Operating income$  3.2 $  0.9
     
Key Statistical Data:  
Billable hours   2,357,608    1,822,653
Clients served   15,731    10,980
Shifts   1,062,422    830,151
Revenue per hour$  23.57 $  22.76
Revenue per shift$  52.30 $  49.98
Hours per shift   2.2    2.2
      

Segment Information - Corporate

 For the Three-
Month Periods
 Ended September 30, 
 
  2018    2017  
Financial Information (in millions):    
Other operating expenses$   31.3 $   25.9
Depreciation and amortization   2.0    3.1
     
Total operating expenses$    33.3 $    29.0
     
  
 For the Nine-
Month Periods
 Ended September 30, 
 
  2018    2017  
Financial Information (in millions):    
Other operating expenses$   92.6 $   85.4
Depreciation and amortization   6.5    9.6
     
Total operating expenses before Securities Class Action Lawsuit settlement, net   99.1    95.0
Securities Class Action Lawsuit settlement, net   —    28.7
     
Total operating expenses$  99.1 $  123.7
     

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,
 
  2018     2017     2018     2017   
Net income attributable to Amedisys, Inc.$   31,377  $   14,558  $   91,885  $   34,149 
Add:    
Income tax expense   9,825     9,364     29,984     17,324 
Interest expense, net   1,962     1,291     5,571     3,496 
Depreciation and amortization   3,164     4,185     9,882     13,139 
Certain items (1)   (609)    7,590     615     37,014 
Interest component of certain items (1)   (451)    (95)    (1,280)    (95)
              
Adjusted EBITDA (2) (6)$  45,268  $  36,893  $  136,657  $  105,027 
                

Adjusted Net Service Revenue Reconciliation:

 For the Three-
Month Period
Ended September 30,  
 For the Nine-
Month Period
Ended September 30,
 
  2018    2017    2018    2017  
Net service revenue$   417,335 $   373,704 $   1,228,200 $   1,113,311
Add:    
Certain items (1)   —    6,506    1,687    6,506
           
Adjusted net service revenue (3) (6)$  417,335 $  380,210 $  1,229,887 $  1,119,817
           

Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:

 For the Three-
Month Period
Ended September 30,  
 For the Nine-
Month Period
Ended September 30,
 
  2018     2017    2018    2017  
Net income attributable to Amedisys, Inc.$   31,377  $   14,558 $   91,885 $   34,149
Add:    
     Certain items (1)   (450)    4,592    455    22,394
            
Adjusted net income attributable to Amedisys, Inc. (4) (6)$  30,927  $  19,150 $  92,340 $  56,543
             
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,
 
  2018     2017    2018    2017  
Net income attributable to Amedisys, Inc. common stockholders per diluted share$   0.96  $   0.42 $   2.71 $   1.00
Add:    
     Certain items (1)   (0.01)    0.13    0.01    0.65
            
Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (5) (6)$  0.95  $  0.56 $  2.73 $  1.65
            

 (1)           The following details the certain items for the three and nine month periods ended September 30, 2018 and 2017:

Certain Items:

 For the Three-Month Period
Ended September 30, 2018  
 For the Nine-Month Period
Ended September 30, 2018
 
 (Income) Expense  
 (Income) Expense  
Certain Items Impacting Net Service Revenue:     
Florida self-audit (pre-acquisition)$  —   $  1,687  
Certain Items Impacting Operating Expenses:  
Acquisition costs   857      1,732  
Legal fees - non-routine   304      1,409  
Certain Items Impacting Total Other Income (Expense):  
Legal settlements   (1,437)    (1,437)
Miscellaneous, other (income) expense, net   (333)    (2,776)
      
Total$  (609) $  615  
      
Net of tax$  (450) $  455  
      
Diluted EPS$  (0.01) $  0.01  
      


 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  
        

(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. 

AMLogo_Vertical-7489U.jpg

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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