Press Release

Amedisys Reports Second Quarter 2020 Financial Results - Reissues 2020 Guidance

07/28/2020

BATON ROUGE, La., July 28, 2020 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three and six-month period ended June 30, 2020.

Three-Month Periods Ended June 30, 2020 and 2019

  • Net service revenue decreased $8.0 million to $485.0 million compared to $493.0 million in 2019.
  • Net income attributable to Amedisys, Inc. of $34.7 million compared to $33.7 million in 2019.
  • Net income attributable to Amedisys, Inc. per diluted share of $1.04 compared to $1.02 in 2019.

Adjusted Quarterly Results*

  • Adjusted EBITDA of $66.4 million compared to $61.4 million in 2019.
  • Adjusted net service revenue of $485.0 million compared to $498.5 million in 2019.
  • Adjusted net income attributable to Amedisys, Inc. of $44.5 million compared to $39.9 million in 2019.
  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.34 compared to $1.21 in 2019.

Six-Month Periods Ended June 30, 2020 and 2019

  • Net service revenue increased $16.4 million to $976.7 million compared to $960.3 million in 2019.
  • Net income attributable to Amedisys, Inc. of $66.5 million compared to $65.0 million in 2019.
  • Net income attributable to Amedisys, Inc. per diluted share of $2.00 compared to $1.98 in 2019.

Adjusted Year to Date Results*

  • Adjusted EBITDA of $119.7 million compared to $116.2 million in 2019.
  • Adjusted net service revenue of $976.7 million compared to $966.3 million in 2019.
  • Adjusted net income attributable to Amedisys, Inc. of $79.3 million compared to $76.3 million in 2019.
  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $2.39 compared to $2.32 in 2019.

* See pages 13-15 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

Paul B. Kusserow, President and Chief Executive Officer stated, “I am very proud of our second quarter results which have allowed us to reissue our full year 2020 guidance ranges, but once again, more proud of our employees that delivered these results during such a momentous and unprecedented time in our nation’s history. Our front-line heroes continue to provide the highest quality care to our patients, wherever they call home even in the face of this Public Health Emergency. They have adapted to our COVID-19 policies and procedures, utilized PPE to protect both themselves and our patients, quickly implemented telehealth for additional patient touch points and have gone above and beyond to be great partners to our referral sources. The pandemic continues to highlight the importance of caring for people in their homes, wherever they call home, and as such has positioned Amedisys for continued growth in the future. A special thank you to all our essential healthcare workers - you are true heroes and none of this would be possible without you.”

2020 Guidance

  • Net service revenue is anticipated to be in the range of $2.040 billion to $2.070 billion.
  • Adjusted EBITDA is anticipated to be in the range of $245 million to $255 million.
  • Adjusted diluted earnings per share is anticipated to be in the range of $4.84 to $5.06 based on an estimated 33.4 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 2020 guidance disclosed in this press release. The home health, hospice and personal care industries are 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, 2019, 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, July 29, 2020, at 11:00 a.m. ET to discuss its second 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 August 29, 2020 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13706583.

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 other operating income, defined as other operating income excluding certain items; (4) adjusted net income attributable to Amedisys, Inc., defined as net income attributable to Amedisys, Inc. excluding certain items; and (5) 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 our patients to manage a chronic disease; or hospice care at the end of life. More than 2,600 hospitals and 67,000 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 more than 21,000 employees in 526 care centers within 39 states and the District of Columbia, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 415,000 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,” “strategy,” “plans,” “anticipates,” “intends,” “projects,” “estimates,” “may,” “might,” “could,” “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: the impact of the novel coronavirus pandemic (“COVID-19”), including the measures that have been and may be taken by governmental authorities to mitigate it, on our business, financial condition and results of operations, 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, 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, competition in the healthcare 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 consistently provide high-quality care, our ability to attract and retain qualified personnel, our ability to keep our patients and employees safe, 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 disaster, acts of terrorism, widespread protest or civil unrest, our ability to integrate, manage and keep our information systems secure, our ability to realize the anticipated benefits of acquisitions 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 Muscato   Kendra Kimmons  
  Vice President, Strategic Finance   Vice 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 June 30,
 
  For the Six-Month
Periods Ended June 30, 

    2020         2019         2020         2019    
Net service revenue $   485,059     $   492,984     $   976,744     $   960,324  
Other operating income     22,780         —         22,780         —  
Cost of service, excluding depreciation and amortization     295,228         290,752         580,965         566,026  
General and administrative expenses:        
Salaries and benefits     105,617         98,356         207,183         193,186  
Non-cash compensation     6,725         5,538         12,634         12,153  
Other     44,003         48,408         93,268         91,810  
Depreciation and amortization     6,334         5,179         11,672         8,074  
Operating expenses     457,907         448,233         905,722         871,249  
Operating income     49,932         44,751         93,802         89,075  
Other income (expense):        
Interest income     214         20         227         44  
Interest expense     (2,752 )       (4,332 )       (5,983 )       (7,681 )
Equity in earnings from equity method investments     487         3,716         964         4,932  
Miscellaneous, net     (2,703 )       193         (2,440 )       429  
    Total other expense, net     (4,754 )       (403 )       (7,232 )       (2,276 )
Income before income taxes     45,178         44,348         86,570         86,799  
Income tax expense     (10,031 )       (10,308 )       (19,377 )       (21,186 )
Net income     35,147         34,040         67,193         65,613  
Net income attributable to noncontrolling interests     (473 )       (298 )       (717 )       (567 )
Net income attributable to Amedisys, Inc $   34,674     $   33,742     $   66,476     $   65,046  
Basic earnings per common share:        
Net income attributable to Amedisys, Inc. common stockholders $   1.07     $   1.05     $   2.05     $   2.03  
Weighted average shares outstanding     32,412         32,075         32,371         32,038  
Diluted earnings per common share:        
Net income attributable to Amedisys, Inc. common stockholders $   1.04     $   1.02     $   2.00     $   1.98  
Weighted average shares outstanding     33,285         32,933         33,259         32,913  


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

  June 30, 2020
(unaudited)
 
  December 31,
2019 

ASSETS    
Current assets:    
Cash and cash equivalents $   177,278     $   30,294  
Restricted cash     3,049         66,196  
Patient accounts receivable     249,030         237,596  
Prepaid expenses     10,788         8,243  
Other current assets     9,395         8,225  
    Total current assets     449,540         350,554  
Property and equipment, net of accumulated depreciation of $100,963 and $96,137     25,007         28,113  
Operating lease right of use assets     92,904         84,791  
Goodwill     937,088         658,500  
Intangible assets, net of accumulated amortization of $12,649 and $7,044     81,813         64,748  
Deferred income taxes     25,463         21,427  
Other assets     33,673         54,612  
    Total assets $   1,645,488     $   1,262,745  
     
LIABILITIES AND EQUITY    
Current liabilities:    
Accounts payable $   33,383     $   31,259  
Payroll and employee benefits     128,275         120,877  
Accrued expenses     169,722         137,111  
Provider relief fund advance     70,000         —  
Current portion of long-term obligations     10,718         9,927  
Current portion of operating lease liabilities     29,950         27,769  
    Total current liabilities     442,048         326,943  
Long-term obligations, less current portion     392,713         232,256  
Operating lease liabilities, less current portion     61,611         56,128  
Other long-term obligations     26,857         5,905  
    Total liabilities     923,229         621,232  
     
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; 36,831,298 and 36,638,021 shares issued; and 32,442,719 and 32,284,051 shares outstanding     37         37  
Additional paid-in capital     665,580         645,256  
Treasury stock, at cost 4,388,579 and 4,353,970 shares of common stock     (257,625 )       (251,241 )
Accumulated other comprehensive income     —         15  
Retained earnings     312,859         246,383  
    Total Amedisys, Inc. stockholders’ equity     720,851         640,450  
Noncontrolling interests     1,408         1,063  
    Total equity     722,259         641,513  
    Total liabilities and equity $   1,645,488     $   1,262,745  
     


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 June 30,
 
  For the Six-Month
Periods Ended June 30, 
    2020       2019       2020       2019  
Cash Flows from Operating Activities:        
Net income $   35,147     $   34,040     $   67,193     $   65,613  
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation and amortization     6,334         5,179         11,672         8,074  
Non-cash compensation     6,725         5,538         12,634         12,153  
Non-cash 401(k) employer match     —         2,307         —         4,686  
Amortization and impairment of operating lease right of use assets     9,500         9,150         18,558         17,495  
(Gain) loss on disposal of property and equipment     (149 )       2         (94 )       (2 )
Loss on sale of equity method investment     2,980         —         2,980         —  
Write-off of other comprehensive income     —         —         (15 )       —  
Deferred income taxes     (5,264 )       2,606         (4,036 )       5,875  
Equity in earnings from equity method investments     (487 )       (3,716 )       (964 )       (4,932 )
Amortization of deferred debt issuance costs/debt discount     217         220         437         433  
Return on equity investment     375         117         2,744         842  
Changes in operating assets and liabilities, net of impact of acquisitions:        
Patient accounts receivable     34,456         (1,832 )       8,997         (24,165 )
Other current assets     2,287         2,292         (3,469 )       (8,343 )
Other assets     (1,092 )       282         (675 )       (56 )
Accounts payable     (3,779 )       1,665         (6,452 )       (9,475 )
Accrued expenses     38,326         10,424         27,990         29,262  
Other long-term obligations     17,686         (37 )       20,746         (181 )
Operating lease liabilities     (8,233 )       (8,061 )       (16,365 )       (16,200 )
Operating lease right of use assets     (1,107 )       (910 )       (1,924 )       (1,754 )
Net cash provided by operating activities     133,922         59,266         139,957         79,325  
         
Cash Flows from Investing Activities:        
Proceeds from sale of deferred compensation plan assets     5         5         21         213  
Proceeds from the sale of property and equipment     68         81         80         146  
Purchases of property and equipment     (267 )       (1,495 )       (1,701 )       (2,693 )
Investments in equity method investees     (875 )       (90 )       (875 )       (210 )
Proceeds from sale of equity method investment     17,876         —         17,876         —  
Acquisitions of businesses, net of cash acquired     (230,374 )       (17,547 )       (299,723 )       (345,414 )
Net cash used in investing activities     (213,567 )       (19,046 )       (284,322 )       (347,958 )
         
Cash Flows from Financing Activities:        
Proceeds from issuance of stock upon exercise of stock options     1,763         987         2,947         1,343  
Proceeds from issuance of stock to employee stock purchase plan     826         752         1,686         1,534  
Shares withheld to pay taxes on non-cash compensation     (2,334 )       (1,802 )       (6,384 )       (4,490 )
Noncontrolling interest distribution     (12 )       (91 )       (372 )       (457 )
Proceeds from borrowings under term loan     —         —         —         175,000  
Proceeds from borrowings under revolving line of credit     237,000         23,000         424,500         184,500  
Repayments of borrowings under revolving line of credit     (222,000 )       (58,000 )       (259,500 )       (92,000 )
Principal payments of long-term obligations     (3,083 )       (1,718 )       (4,675 )       (2,277 )
Debt issuance costs     —         —         —         (847 )
Provider relief fund advance     70,000         —         70,000         —  
Net cash provided by (used in) financing activities     82,160         (36,872 )       228,202         262,306  
Net increase (decrease) in cash, cash equivalents and restricted cash     2,515         3,348         83,837         (6,327 )
Cash, cash equivalents and restricted cash at beginning of period     177,812         10,554         96,490         20,229  
Cash, cash equivalents and restricted cash at end of period $   180,327     $   13,902     $   180,327     $   13,902  


Supplemental Disclosures of Cash Flow Information:        
Cash paid for interest $   1,537     $   3,462     $   3,292     $   4,187  
Cash paid for income taxes, net of refunds received $   2,881     $   7,445     $   8,153     $   7,849  
Cash paid for operating lease liabilities $   9,340     $   8,971     $   18,289     $   17,954  
Cash paid for finance lease liabilities $   487     $   408     $   986     $   792  
         
Supplemental Disclosures of Non-Cash Activity:        
Right of use assets obtained in exchange for operating lease liabilities $   12,454     $   10,488     $   18,891     $   102,231  
Right of use assets obtained in exchange for finance lease liabilities $   233     $   998     $   487     $   1,806  
Reductions to right of use assets resulting from reductions to operating lease liabilities $   248     $   286     $   407     $   911  
Days revenue outstanding (1)     42.0         41.1         42.0         41.1  

(1) Our calculation of days revenue outstanding at June 30, 2020 and 2019 is derived by dividing our ending patient accounts receivable by our average daily patient revenue for the three-month periods ended June 30, 2020 and 2019, respectively.


AMEDISYS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Amounts in millions, except statistical information)
(Unaudited)

Segment Information - Home Health

  For the Three-Month Periods
Ended June 30,
 
    2020       2019  
Financial Information (in millions):    
Medicare $   192.9     $   219.1  
Non-Medicare     97.3         99.5  
Net service revenue     290.2         318.6  
Other operating income     15.1         —   
Cost of service     184.0         187.8  
Gross margin     121.3         130.8  
Other operating expenses     73.1         75.1  
Operating income $   48.2     $   55.7  
     
Same Store Growth (1):    
Medicare revenue     (12 %)       6 %
Non-Medicare revenue     (2 %)       17 %
Total admissions     (9 %)       7 %
Total volume (2)     (2 %)       6 %
Key Statistical Data - Total (3):    
Admissions     74,327         81,763  
Recertifications     47,628         43,361  
Total volume     121,955         125,124  
     
Medicare completed episodes (6)     68,660         77,939  
Average Medicare revenue per completed episode (4) (6) $   2,818     $   2,885  
Medicare visits per completed episode (5) (6)     15.4         17.3  
     
Visiting Clinician Cost per Visit $   93.17     $   81.97  
Clinical Manager Cost per Visit $   9.42     $   7.65  
Total Cost per Visit $   102.59     $   89.62  
Visits     1,793,652         2,096,486  


  For the Six-Month Periods
Ended June 30,
 
    2020       2019  
Financial Information (in millions):    
Medicare $   396.8     $   432.5  
Non-Medicare     197.0         196.2  
Net service revenue     593.8         628.7  
Other operating income     15.1         —   
Cost of service     363.8         373.5  
Gross margin     245.1         255.2  
Other operating expenses     149.8         147.5  
Operating income $   95.3     $   107.7  
     
Same Store Growth (1):    
Medicare revenue     (8 %)       5 %
Non-Medicare revenue     — %       20 %
Total admissions     (3 %)       7 %
Total volume (2)     (1 %)       6 %
Key Statistical Data - Total (3):    
Admissions     160,302         165,732  
Recertifications     88,169         85,156  
Total volume     248,471         250,888  
     
Medicare completed episodes (6)     144,296         153,422  
Average Medicare revenue per completed episode (4) (6) $   2,774     $   2,862  
Medicare visits per completed episode (5) (6)     15.6         17.2  
     
Visiting Clinician Cost per Visit $   88.41     $   81.51  
Clinical Manager Cost per Visit $   9.19     $   7.83  
Total Cost per Visit $   97.60     $   89.34  
Visits     3,727,097         4,181,574  

(1) Same store information represents the percent change in our Medicare, Non-Medicare and Total revenue, admissions or volume for the period as a percent of the Medicare, Non-Medicare and Total revenue, admissions or volume of the prior period. Effective July 1, 2019, same store is defined as care centers that we have operated for at least the last twelve months and startups that are an expansion of a same store care center.
(2) Total volume includes all admissions and recertifications.
(3) Total includes acquisitions and denovos.
(4) Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare completed episode of care. Average Medicare revenue per completed episode for the three and six-month periods ended June 30, 2020 reflects the suspension of sequestration effective May 1, 2020. Additionally, average Medicare revenue per completed episode for the six-month period ended June 30, 2020 reflects the transition to PDGM during the year and therefore includes reimbursement under both the 60-day episode of care (pre-PDGM) payment rate and the 30-day period of care (PDGM) payment rate.
(5) 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.
(6) Prior year amounts have been recast to conform to the current year calculation.

Segment Information - Hospice

  For the Three-Month Periods
Ended June 30,
 
    2020       2019  
Financial Information (in millions):    
Medicare $   167.0     $   145.8  
Non-Medicare     10.1         7.4  
Net service revenue     177.1         153.2  
Other operating income     7.2         —   
Cost of service     97.2         87.3  
Gross margin     87.1         65.9  
Other operating expenses     41.4         35.3  
Operating income $   45.7     $   30.6  
     
Same Store Growth (1):    
Medicare revenue     4 %       1 %
Hospice admissions     (1 %)       7 %
Average daily census     — %       5 %
Key Statistical Data - Total (2):    
Hospice admissions     11,411         10,430  
Average daily census     12,513         11,427  
Revenue per day, net $   155.51     $   147.27  
Cost of service per day $   85.34     $   83.96  
Average discharge length of stay     94         98  


  For the Six-Month Periods
Ended June 30,
 
    2020       2019  
Financial Information (in millions):    
Medicare $   327.5     $   276.5  
Non-Medicare     19.0         13.7  
Net service revenue     346.5         290.2  
Other operating income     7.2         —   
Cost of service     189.0         161.4  
Gross margin     164.7         128.8  
Other operating expenses     80.7         64.7  
Operating income $   84.0     $   64.1  
     
Same Store Growth (1):    
Medicare revenue     5 %       5 %
Hospice admissions     — %       6 %
Average daily census     2 %       7 %
Key Statistical Data - Total (2):    
Hospice admissions     22,729         20,141  
Average daily census     12,279         10,709  
Revenue per day, net $   155.04     $   149.72  
Cost of service per day $   84.58     $   83.25  
Average discharge length of stay     96         98  

(1) Same store information represents the percent change in our Medicare revenue, Hospice admissions or average daily census for the period as a percent of the Medicare revenue, Hospice admissions or average daily census of the prior period. Effective July 1, 2019, same store is defined as care centers that we have operated for at least the last twelve months and startups that are an expansion of a same store care center.
(2) Total includes acquisitions and denovos.

Segment Information - Personal Care

  For the Three-Month Periods
Ended June 30,  
    2020     2019
Financial Information (in millions):    
Medicare $   —   $   —
Non-Medicare     17.7       21.2
Net service revenue     17.7       21.2
Other operating income     0.5       —
Cost of service     14.1       15.6
Gross margin     4.1       5.6
Other operating expenses     3.0       3.2
Operating income $   1.1   $   2.4
     
Key Statistical Data - Total (1):    
Billable hours     642,720       848,245
Clients served     9,956       12,962
Shifts     282,207       382,287
Revenue per hour $   27.58   $   25.01
Revenue per shift $   62.80   $   55.49
Hours per shift     2.3       2.2


  For the Six-Month Periods
Ended June 30,
 
    2020     2019
Financial Information (in millions):    
Medicare $   —   $   —
Non-Medicare     36.4       41.4
Net service revenue     36.4       41.4
Other operating income     0.5       —
Cost of service     28.2       31.1
Gross margin     8.7       10.3
Other operating expenses     6.4       6.4
Operating income $   2.3   $   3.9
     
Key Statistical Data - Total (1):    
Billable hours     1,394,797       1,681,862
Clients served     12,936       14,687
Shifts     615,671       758,469
Revenue per hour $   26.12   $   24.60
Revenue per shift $   59.17   $   54.56
Hours per shift     2.3       2.2

(1) Total includes acquisitions.

Segment Information - Corporate

  For the Three-Month Periods
Ended June 30,  
    2020     2019
Financial Information (in millions):    
Other operating expenses $   40.3   $   40.2
Depreciation and amortization     4.8       3.7
Total operating expenses $   45.1   $   43.9
     


  For the Six-Month Periods
Ended June 30,  
    2020     2019
Financial Information (in millions):    
Other operating expenses $   79.2   $   81.5
Depreciation and amortization     8.6       5.1
Total operating expenses $   87.8   $   86.6
     


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”) Reconciliation:

  For the Three-
Month Periods
Ended June 30,  
  For the Six-
Month Periods
Ended June 30, 

    2020       2019       2020       2019  
Net income attributable to Amedisys, Inc. $   34,674     $   33,742     $   66,476     $   65,046  
Add:        
Income tax expense     10,031         10,308         19,377         21,186  
Interest expense, net     2,538         4,312         5,756         7,637  
Depreciation and amortization     6,334         5,179         11,672         8,074  
Certain items (1)     13,313         8,257         17,349         15,171  
Interest component of certain items (1)     (446 )       (446 )       (892 )       (887 )
Adjusted EBITDA (2) (7) $   66,444     $   61,352     $   119,738     $   116,227  
         

Adjusted Net Service Revenue Reconciliation:

  For the Three-
Month Periods
Ended June 30,  
  For the Six-
Month Periods
Ended June 30, 

    2020     2019     2020     2019
Net service revenue $   485,059   $   492,984   $   976,744   $   960,324
Add:        
Certain items (1)     —        5,515       —        5,993
Adjusted net service revenue (3) (7) $   485,059   $   498,499   $   976,744   $   966,317
         

Adjusted Other Operating Income Reconciliation:

  For the Three-
Month Periods
Ended June 30,  
  For the Six-
Month Periods
Ended June 30, 

    2020       2019     2020       2019
Other operating income $   22,780     $   —   $   22,780     $   —
Add:        
Certain items (1)     (22,780 )       —       (22,780 )       —
Adjusted other operating income (4) (7) $   —     $    —   $   —     $    —
         

Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:

  For the Three-
Month Periods
Ended June 30,  
  For the Six-
Month Periods
Ended June 30, 

    2020     2019     2020     2019
Net income attributable to Amedisys, Inc. $   34,674   $   33,742   $   66,476   $   65,046
Add:        
Certain items (1)     9,852       6,110       12,839       11,226
Adjusted net income attributable to Amedisys, Inc. (5) (7) $   44,526   $   39,852   $   79,315   $   76,272
         

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

  For the Three-
Month Periods
Ended June 30,
 
  For the Six-
Month Periods
Ended June 30, 

    2020     2019     2020     2019
Net income attributable to Amedisys, Inc. common stockholders per diluted share $   1.04   $   1.02   $   2.00   $   1.98
Add:        
Certain items (1)     0.30       0.19       0.39       0.34
Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (6) (7) $   1.34   $   1.21   $   2.39   $   2.32
         

(1) The following details the certain items for the three and six-month periods ended June 30, 2020 and 2019:

Certain Items:

  For the Three -Month Period
Ended June 30, 2020  
  For the Six-Month Period
Ended June 30, 2020 

  (Income) Expense   (Income) Expense
Certain Items Impacting Other Operating Income:    
CARES Act & State COVID-19 grants $   (22,780 )   $   (22,780 )
Certain Items Impacting Cost of Service:    
COVID-19 costs     21,993         23,010  
Severance-reductions in staffing levels     5,183         5,183  
Certain Items Impacting Operating Expenses:    
Acquisition and integration costs     3,599         5,935  
COVID-19 costs     1,051         1,063  
Severance-reductions in staffing levels     271         271  
Certain Items Impacting Total Other Income (Expense):    
Interest component of certain items     446         892  
Other (income) expense, net     3,550         3,775  
Total $   13,313     $   17,349  
Net of tax     9,852         12,839  
Diluted EPS $   0.30     $   0.39  
     


  For the Three-Month Period
Ended June 30, 2019  
  For the Six-Month Period
Ended June 30, 2019 
  (Income) Expense     (Income) Expense 
Certain Items Impacting Net Service Revenue:    
Contingency accrual $   5,523     $   6,541  
Planned closures (8)     (8 )       (548 )
Certain Items Impacting Cost of Service:    
Planned closures (8)     313         1,157  
Certain Items Impacting Operating Expenses:    
Planned closures (8)     69         157  
Acquisition and integration costs     4,494         10,252  
Legal fees - non-routine     108         (24 )
Certain Items Impacting Total Other Income (Expense):    
Interest component of certain items     446         887  
Other (income) expense, net     (2,688 )       (3,251 )
Total $   8,257     $   15,171  
Net of tax     6,110         11,226  
Diluted EPS $   0.19     $   0.34  
     

(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 excluding certain items as described in footnote 1.
(4) Adjusted other operating income is defined as other operating income excluding certain items as described in footnote 1.
(5) 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.
(6) 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.
(7) Adjusted EBITDA, adjusted net service revenue, adjusted other operating income, 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 measures 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.
(8) Planned closures consist of in-patient units acquired from Compassionate Care Hospice whose operations ceased in April 2019.


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
1005 17th Avenue South
Suite 610
Nashville TN, 37212