Press Release

Amedisys Reports Fourth Quarter and Year End 2020 Financial Results

02/24/2021
Issues 2021 Guidance; Announces Executive Promotions

BATON ROUGE, La., Feb. 24, 2021 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three-month period and year ended December 31, 2020.

Three-Month Periods Ended December 31, 2020 and 2019

  • Net service revenue increased $50.0 million to $550.7 million compared to $500.7 million in 2019.

  • Net income attributable to Amedisys, Inc. of $45.2 million compared to $27.7 million in 2019.

  • Net income attributable to Amedisys, Inc. per diluted share of $1.36 compared to $0.83 in 2019.

Adjusted Quarterly Results*

  • Adjusted EBITDA of $78.1 million compared to $52.2 million in 2019.

  • Adjusted net service revenue of $550.7 million compared to $500.7 million in 2019.

  • Adjusted net income attributable to Amedisys, Inc. of $49.5 million compared to $31.1 million in 2019.

  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.49 compared to $0.94 in 2019.

Years Ended December 31, 2020 and 2019

  • Net service revenue increased $115.9 million to $2,071.5 million compared to $1,955.6 million in 2019.

  • Net income attributable to Amedisys, Inc. of $183.6 million compared to $126.8 million in 2019.

  • Net income attributable to Amedisys, Inc. per diluted share of $5.52 compared to $3.84 in 2019.

Adjusted Year End Results*

  • Adjusted EBITDA of $273.5 million compared to $225.3 million in 2019.

  • Adjusted net service revenue of $2,071.5 million compared to $1,961.6 million in 2019.

  • Adjusted net income attributable to Amedisys, Inc. of $203.3 million compared to $145.2 million in 2019.

  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $6.11 compared to $4.40 in 2019.

*  See pages 13-16 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

2021 Guidance

  • Net service revenue is anticipated to be in the range of $2.275 billion to $2.315 billion.

  • Adjusted EBITDA is anticipated to be in the range of $315 million to $325 million.

  • Adjusted diluted earnings per share is anticipated to be in the range of $6.25 to $6.47 based on an estimated 33.4 million shares outstanding.

This guidance excludes the effects of any future acquisitions and potential share repurchases, if any are made.

Executive Promotions

On February 18, 2021, the Board of Directors (the “Board”) of the Company promoted Christopher T. Gerard, currently the Company’s Chief Operating Officer, to President and Chief Operating Officer and Scott G. Ginn, currently the Company’s Chief Financial Officer, to Executive Vice President and Chief Financial Officer, effective immediately.

Paul B. Kusserow, Chairman and Chief Executive Officer stated, “I am very proud of our fourth quarter and full year 2020 results. This was an incredible year under normal circumstances, throw in PDGM and a pandemic and I really could not be more proud of the team for all we accomplished. A special thank you to all of our clinician staff for continuing to do what you do best. It is because of your compassion, bravery and tireless efforts that we are able to deliver another great quarter. I would also like to congratulate Chris Gerard on his promotion to President and COO and Scott Ginn on his promotion to Executive Vice President and CFO. Chris and Scott have been integral to both the company’s operational success as well as in setting our strategic direction. This is a fitting reward for their great work!”

We urge caution in considering the current trends and 2021 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, 2020, 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 Thursday, February 25, 2021, at 11:00 a.m. ET to discuss its fourth quarter and year end 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 March 25, 2021 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13715337.

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 net interest expense, provision for income taxes 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 2,900 hospitals and 78,000 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 approximately 21,000 employees in 514 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 418,000 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 disasters or 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
  Senior Vice President, Finance Vice President, Marketing & Communications
  (855) 259-2046 (225) 299-3720
  IR@amedisys.com kendra.kimmons@amedisys.com

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

         
  For the Three-Month 
Periods Ended December 31,
    For the Years Ended 
December 31,
 
  2020
    2019
    2020
    2019
 
             
  (Unaudited)
           
Net service revenue $ 550,705     $ 500,678     $ 2,071,519     $ 1,955,633  
Other operating income   6,780             34,372        
Cost of service, excluding depreciation and amortization   306,736       295,603       1,185,369       1,150,337  
General and administrative expenses:              
Salaries and benefits   119,119       101,325       449,448       394,452  
Non-cash compensation   6,972       6,589       26,730       25,040  
Other   49,506       48,150       192,122       188,434  
Depreciation and amortization   8,847       5,988       28,802       18,428  
Asset impairment charge   4,152       1,470       4,152       1,470  
                               
               
Operating expenses   495,332       459,125       1,886,623       1,778,161  
                               
               
Operating income   62,153       41,553       219,268       177,472  
Other income (expense):              
Interest income   34       19       292       78  
Interest expense   (2,363 )     (3,056 )     (11,038 )     (14,515 )
Equity in earnings from equity method investments   1,567       1,218       3,966       5,338  
Miscellaneous, net   649       (367 )     (1,669 )     2,037  
                               
                               
               
Total other expense, net   (113 )     (2,186 )     (8,449 )     (7,062 )
                               
                               
               
Income before income taxes   62,040       39,367       210,819       170,410  
Income tax expense   (16,460 )     (11,398 )     (25,635 )     (42,503 )
                               
               
Net income   45,580       27,969       185,184       127,907  
Net income attributable to noncontrolling interests   (429 )     (314 )     (1,576 )     (1,074 )
                               
               
Net income attributable to Amedisys, Inc. $ 45,151     $ 27,655     $ 183,608     $ 126,833  
                               
Basic earnings per common share:                              
Net income attributable to Amedisys, Inc. common stockholders $ 1.38     $ 0.86     $ 5.64     $ 3.95  
Weighted average shares outstanding   32,825       32,278       32,559       32,142  
Diluted earnings per common share:              
Net income attributable to Amedisys, Inc. common stockholders $ 1.36     $ 0.83     $ 5.52     $ 3.84  
Weighted average shares outstanding   33,243       33,123       33,268       32,990  

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

     
  As of December 31,
 
  2020
    2019
 
ASSETS              
Current assets:              
Cash and cash equivalents $ 81,808     $ 30,294  
Restricted cash   1,549       66,196  
Patient accounts receivable   255,145       237,596  
Prepaid expenses   10,217       8,243  
Other current assets   13,265       8,225  
           
Total current assets   361,984       350,554  
Property and equipment, net of accumulated depreciation of $95,024 and $96,137   23,719       28,113  
Operating lease right of use assets   93,440       84,791  
Goodwill   932,685       658,500  
Intangible assets, net of accumulated amortization of $22,973 and $7,044   74,183       64,748  
Deferred income taxes   47,987       21,427  
Other assets   33,200       54,612  
               
Total assets $ 1,567,198     $ 1,262,745  
               
LIABILITIES AND EQUITY              
Current liabilities:              
Accounts payable $ 42,674     $ 31,259  
Payroll and employee benefits   146,929       120,877  
Accrued expenses   166,192       137,111  
Provider relief fund advance   60,000        
Current portion of long-term obligations   10,496       9,927  
Current portion of operating lease liabilities   30,046       27,769  
               
Total current liabilities   456,337       326,943  
Long-term obligations, less current portion   204,511       232,256  
Operating lease liabilities, less current portion   61,987       56,128  
Other long-term obligations   33,622       5,905  
               
Total liabilities   756,457       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; 37,470,212 and 36,638,021 shares issued; and 32,814,278 and 32,284,051 shares outstanding   38       37  
Additional paid-in capital   698,287       645,256  
Treasury stock at cost, 4,655,934 and 4,353,970 shares of common stock   (319,092 )     (251,241 )
Accumulated other comprehensive income         15  
Retained earnings   429,991       246,383  
               
Total Amedisys, Inc. stockholders’ equity   809,224       640,450  
Noncontrolling interests   1,517       1,063  
               
Total equity   810,741       641,513  
               
Total liabilities and equity $ 1,567,198     $ 1,262,745  
               

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

                               
  For the Three-Month
Periods Ended December 31,
    For the Years Ended
December 31,
 
  2020
    2019
    2020
    2019
 
               
  (Unaudited)
               
Cash Flows from Operating Activities:                              
Net income $ 45,580     $ 27,969     $ 185,184     $ 127,907  
Adjustments to reconcile net income to net cash provided by operating activities:                              
Depreciation and amortization   8,847       5,988       28,802       18,428  
Non-cash compensation   6,972       6,589       26,730       25,040  
Non-cash 401(k) employer match         2,964             10,509  
Amortization and impairment of operating lease right of use assets   9,991       8,891       39,140       35,905  
Loss (gain) on disposal of property and equipment   47       135       (30 )     141  
Loss on sale of equity method investment               2,980        
Write-off of other comprehensive income               (15 )      
Deferred income taxes   (23,798 )     (4,332 )     (26,560 )     13,466  
Equity in earnings from equity method investments   (1,567 )     (1,218 )     (3,966 )     (5,338 )
Amortization of deferred debt issuance costs/debt discount   216       220       869       873  
Return on equity investment   1,525       1,228       5,444       4,955  
Asset impairment charge   4,152       1,470       4,152       1,470  
Changes in operating assets and liabilities, net of impact of acquisitions:                              
Patient accounts receivable   (4,372 )     15,323       2,114       (24,146 )
Other current assets   21,036       7,512       (7,181 )     (2,682 )
Other assets   122       630       31       832  
Accounts payable   3,568       (3,184 )     1,941       (11,329 )
Accrued expenses   14,245       14,193       39,839       42,096  
Other long-term obligations   (10,764 )     (98 )     27,717       (329 )
Operating lease liabilities   (9,119 )     (8,179 )     (34,695 )     (32,295 )
Operating lease right of use assets   (769 )     (881 )     (3,544 )     (3,503 )
                               
Net cash provided by operating activities   65,912       75,220       288,952       202,000  
                               
Cash Flows from Investing Activities:                              
Proceeds from sale of deferred compensation plan assets   7       161       101       448  
Proceeds from the sale of property and equipment         4       80       162  
Purchases of property and equipment   (2,337 )     (1,551 )     (5,332 )     (7,888 )
Investments in equity method investees               (875 )     (210 )
Proceeds from sale of equity method investment               17,876        
Acquisitions of businesses, net of cash acquired   765             (298,958 )     (345,460 )
                               
Net cash used in investing activities   (1,565 )     (1,386 )     (287,108 )     (352,948 )
                               
Cash Flows from Financing Activities:                              
Proceeds from issuance of stock upon exercise of stock options   255       223       6,325       3,611  
Proceeds from issuance of stock to employee stock purchase plan   962       803       3,562       3,187  
Shares withheld to pay taxes on non-cash compensation   (321 )     (171 )     (54,493 )     (9,556 )
Non-controlling interest distribution   (450 )     (152 )     (1,122 )     (1,062 )
Proceeds from borrowings under term loan                     175,000  
Proceeds from borrowings under revolving line of credit   252,200       70,000       684,200       262,500  
Repayments of borrowings under revolving line of credit   (346,200 )     (67,000 )     (703,200 )     (200,000 )
Principal payments of long-term obligations   (2,889 )     (1,804 )     (10,249 )     (5,624 )
Debt issuance costs                     (847 )
Provider relief fund advance               60,000        
                               
Net cash (used in) provided by financing activities   (96,443 )     1,899       (14,977 )     227,209  
Net (decrease) increase in cash, cash equivalents and restricted cash   (32,096 )     75,733       (13,133 )     76,261  
Cash, cash equivalents and restricted cash at beginning of period   115,453       20,757       96,490       20,229  
                               
Cash, cash equivalents and restricted cash at end of period $ 83,357     $ 96,490     $ 83,357     $ 96,490  
                               
Supplemental Disclosures of Cash Flow Information:                              
Cash paid for interest $ 1,305     $ 1,872     $ 6,207     $ 9,628  
                               
Cash paid for income taxes, net of refunds received $ 20,431     $ 11,866     $ 50,721     $ 29,522  
                               
Days revenue outstanding (1)   40.2       40.9       40.2       40.9  

(1)    Our calculation of days revenue outstanding, net is derived by dividing our ending net patient accounts receivable at December 31, 2020 and 2019 by our average daily net patient service revenue for the three-month periods ended December 31, 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 December 31,
 
  2020
    2019
 
Financial Information (in millions) :              
Medicare $ 228.3     $ 215.2  
Non-Medicare   101.1       101.0  
               
Net service revenue   329.4       316.2  
Other operating income   2.5        
Cost of service   186.1       191.7  
               
Gross margin   145.8       124.5  
Asset impairment charge   3.4       1.5  
Other operating expenses   81.5       77.4  
               
Operating income $ 60.9     $ 45.6  
               
Same Store Growth (1):              
Medicare revenue   6 %     2 %
Non-Medicare revenue   %     10 %
Total admissions   6 %     4 %
Total volume (2)   5 %     4 %
Key Statistical Data - Total (3):              
Admissions   85,474       81,024  
Recertifications   45,932       44,072  
               
Total volume   131,406       125,096  
               
Medicare completed episodes (6)   80,008       77,291  
Average Medicare revenue per completed episode (4) (6) $ 2,906     $ 2,852  
Medicare visits per completed episode (5) (6)   14.0       16.8  
               
Visiting Clinician Cost per Visit $ 92.62     $ 85.82  
Clinical Manager Cost per Visit $ 9.38     $ 8.44  
               
Total Cost per Visit $ 102.00     $ 94.26  
               
Visits   1,824,557       2,034,550  


     
  For the Years Ended
December 31,
 
  2020
    2019
 
Financial Information (in millions) :              
Medicare $ 847.3     $ 859.2  
Non-Medicare   401.9       397.2  
               
Net service revenue   1,249.2       1,256.4  
Other operating income   20.2        
Cost of service   729.9       754.1  
               
Gross margin   539.5       502.3  
Asset impairment charge   3.4       1.5  
Other operating expenses   311.1       301.4  
               
Operating income $ 225.0     $ 199.4  
               
Same Store Growth (1):              
Medicare revenue   (1 %)     4 %
Non-Medicare revenue   1 %     16 %
Total admissions   1 %     7 %
Total volume (2)   2 %     5 %
Key Statistical Data - Total (3):              
Admissions   331,354       328,693  
Recertifications   181,195       172,568  
               
Total volume   512,549       501,261  
               
Medicare completed episodes (6)   301,856       306,520  
Average Medicare revenue per completed episode (4) (6) $ 2,836     $ 2,853  
Medicare visits per completed episode (5) (6)   14.9       17.0  
               
Visiting Clinician Cost per Visit $ 89.62     $ 83.11  
Clinical Manager Cost per Visit $ 9.17     $ 8.04  
               
Total Cost per Visit $ 98.79     $ 91.15  
               
Visits   7,388,549       8,273,308  

(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-month period and year ended December 31, 2020 reflects the the transition to PDGM effective January 1, 2020 and the suspension of sequestration effective May 1, 2020.
(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 December 31,
 
  2020
    2019
 
Financial Information (in millions):              
Medicare $ 193.5     $ 156.6  
Non-Medicare   10.4       8.0  
               
Net service revenue   203.9       164.6  
Other operating income   4.2        
Cost of service   107.5       89.2  
               
Gross margin   100.6       75.4  
Asset impairment charge   0.8        
Other operating expenses   48.5       38.2  
               
Operating income $ 51.3     $ 37.2  
               
Same Store Growth (1):              
Medicare revenue   4 %     9 %
Hospice admissions   15 %     1 %
Average daily census   %     8 %
Key Statistical Data - Total (2):              
Hospice admissions   13,939       10,139  
Average daily census   13,793       11,660  
Revenue per day, net $ 160.72     $ 153.42  
Cost of service per day $ 84.72     $ 83.13  
Average discharge length of stay   102       100  
   
  For the Years Ended
December 31,
 
  2020
    2019
 
Financial Information (in millions):              
Medicare $ 710.0     $ 586.6  
Non-Medicare   40.1       30.6  
               
Net service revenue   750.1       617.2  
Other operating income   13.1        
Cost of service   400.6       335.1  
               
Gross margin   362.6       282.1  
Asset impairment charge   0.8        
Other operating expenses   177.6       139.1  
               
Operating income $ 184.2     $ 143.0  
               
Same Store Growth (1):              
Medicare revenue   4 %     7 %
Hospice admissions   6 %     4 %
Average daily census   1 %     7 %
Key Statistical Data - Total (2):              
Hospice admissions   49,694       40,194  
Average daily census   13,081       11,164  
Revenue per day, net $ 156.69     $ 151.47  
Cost of service per day $ 83.67     $ 82.24  
Average discharge length of stay   99       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 December 31,
  2020
  2019
Financial Information (in millions):          
Medicare $   $
Non-Medicare   17.4     19.9
           
Net service revenue   17.4     19.9
Other operating income   0.1    
Cost of service   13.2     14.7
           
Gross margin   4.3     5.2
Other operating expenses   3.0     3.0
           
Operating income $ 1.3   $ 2.2
           
Key Statistical Data - Total (1):          
Billable hours   662,163     802,225
Clients served   10,057     12,300
Shifts   281,445     359,255
Revenue per hour $ 26.24   $ 24.88
Revenue per shift $ 61.74   $ 55.56
Hours per shift   2.4     2.2


  For the Years Ended
December 31,
  2020
  2019
Financial Information (in millions):          
Medicare $   $
Non-Medicare   72.2     82.0
           
Net service revenue   72.2     82.0
Other operating income   1.1    
Cost of service   54.9     61.1
           
Gross margin   18.4     20.9
Other operating expenses   12.6     12.5
           
Operating income $ 5.8   $ 8.4
           
Key Statistical Data - Total (1):          
Billable hours   2,730,121     3,308,338
Clients served   15,019     17,364
Shifts   1,177,586     1,488,175
Revenue per hour $ 26.45   $ 24.80
Revenue per shift $ 61.31   $ 55.13
Hours per shift   2.3     2.2

(1)    Total includes acquisitions.

Segment Information - Corporate

  For the Three-Month Periods
Ended December 31,
  2020
  2019
Financial Information (in millions):          
Other operating expenses $ 44.0   $ 38.9
Depreciation and amortization   7.3     4.5
           
Total operating expenses $ 51.3   $ 43.4
           
           
  For the Years Ended
December 31,
  2020
  2019
Financial Information (in millions):          
Other operating expenses $ 173.2   $ 160.9
Depreciation and amortization   22.5     12.4
           
Total operating expenses $ 195.7   $ 173.3
           

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 December 31,
    For the Years Ended
December 31,
 
  2020
    2019
    2020
    2019
 
Net income attributable to Amedisys, Inc. $ 45,151     $ 27,655     $ 183,608     $ 126,833  
Add:                              
Income tax expense   16,460       11,398       25,635       42,503  
Interest expense, net   2,329       3,037       10,746       14,437  
Depreciation and amortization   8,847       5,988       28,802       18,428  
Certain items (1)   5,815       4,618       26,658       24,877  
Interest component of certain items (1)   (464 )     (451 )     (1,914 )     (1,789 )
                               
Adjusted EBITDA (2) (7) $ 78,138     $ 52,245     $ 273,535     $ 225,289  
                               

Adjusted Net Service Revenue Reconciliation:

  For the Three-Month Periods
Ended December 31,
  For the Years Ended
December 31,
  2020
  2019
  2020
  2019
Net service revenue $ 550,705   $ 500,678   $ 2,071,519   $ 1,955,633
Add:                      
Certain items (1)       6         5,999
                       
Adjusted net service revenue (3) (7) $ 550,705   $ 500,684   $ 2,071,519   $ 1,961,632
                       

Adjusted Other Operating Income Reconciliation:

  For the Three-Month Periods
Ended December 31,
  For the Years Ended
December 31,
  2020
    2019
  2020
    2019
Other operating income $ 6,780     $   $ 34,372     $
Add:                          
Certain items (1)   (6,780 )         (34,372 )    
                           
Adjusted other operating income (4) (7) $     $   $     $
                           

Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:

  For the Three-Month Periods
Ended December 31,
  For the Years Ended
December 31,
  2020
  2019
  2020
  2019
Net income attributable to Amedisys, Inc. $ 45,151   $ 27,655   $ 183,608   $ 126,833
Add:                      
Certain items (1)   4,303     3,417     19,727     18,409
                       
Adjusted net income attributable to Amedisys, Inc. (5) (7) $ 49,454   $ 31,072   $ 203,335   $ 145,242
                       

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

  For the Three-Month Periods
Ended December 31,
  For the Years Ended
December 31,
  2020
  2019
  2020
  2019
Net income attributable to Amedisys, Inc. common stockholders per diluted share $ 1.36   $ 0.83   $ 5.52   $ 3.84
Add:                      
Certain items (1)   0.13     0.10     0.59     0.56
                       
Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (6) (7) $ 1.49   $ 0.94   $ 6.11   $ 4.40
                       

(1)    The following details the certain items for the three-month periods and years ended December 31, 2020 and 2019:

Certain Items:

  For the Three-Month Period
Ended December 31, 2020
    For the Year Ended
December 31, 2020
 
  (Income) Expense
    (Income) Expense
 
Certain Items Impacting Other Operating Income:              
CARES Act & State COVID-19 grants   (6,780 )     (34,372 )
Certain Items Impacting Cost of Service:              
COVID-19 costs   6,568       33,967  
Severance - reductions in staffing levels         4,633  
Certain Items Impacting Operating Expenses:              
Acquisition and integration costs   1,234       10,795  
COVID-19 costs   177       1,562  
Severance - reductions in staffing levels         271  
Asset impairment   4,152       4,152  
Certain Items Impacting Total Other Income (Expense):              
Interest component of certain items   464       1,914  
Other (income) expense, net         3,736  
               
Total $ 5,815     $ 26,658  
               
Net of tax $ 4,303     $ 19,727  
               
Diluted EPS $ 0.13     $ 0.59  
               


  For the Three-Month Period
Ended December 31, 2019
  For the Year Ended
December 31, 2019
 
  (Income) Expense
  (Income) Expense
 
Certain Items Impacting Net Service Revenue:            
Contingency accrual $   $ 6,541  
Planned closures (8)   6     (542 )
Certain Items Impacting Cost of Service:            
Planned closures (8)   2     1,174  
Certain Items Impacting Operating Expenses:            
Planned closures (8)   2     187  
Acquisition and integration costs   1,718     16,111  
Legal fees - non-routine   604     977  
Asset impairment   1,470     1,470  
Certain Items Impacting Total Other Income (Expense):            
Legal settlements       (1,437 )
Interest component of certain items   451     1,789  
Other (income) expense, net   365     (1,393 )
             
Total $ 4,618   $ 24,877  
             
Net of tax $ 3,417   $ 18,409  
             
Diluted EPS $ 0.10   $ 0.56  
             

(2)    Adjusted EBITDA is defined as net income attributable to Amedisys, Inc. before net interest expense, provision for income taxes 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.


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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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