Press Release

Amedisys Reports Second Quarter 2021 Financial Results, Closing of Contessa Acquisition, Expansion of Credit Facility and Authorization of New $100 Million Share Repurchase Program

08/04/2021

BATON ROUGE, La., Aug. 04, 2021 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three and six-month periods ended June 30, 2021.

Three-Month Periods Ended June 30, 2021 and 2020

  • Net service revenue increased $79.2 million to $564.2 million compared to $485.0 million in 2020.
  • Net income attributable to Amedisys, Inc. of $80.1 million compared to $34.7 million in 2020.
  • Net income attributable to Amedisys, Inc. per diluted share of $2.43 compared to $1.04 in 2020.

Adjusted Quarterly Results*

  • Adjusted EBITDA of $83.8 million compared to $66.4 million in 2020.
  • Adjusted net service revenue of $557.6 million compared to $485.0 million in 2020.
  • Adjusted net income attributable to Amedisys, Inc. of $55.7 million compared to $44.5 million in 2020.
  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.69 compared to $1.34 in 2020.

Six-Month Periods Ended June 30, 2021 and 2020

  • Net service revenue increased $124.6 million to $1,101.3 million compared to $976.7 million in 2020.
  • Net income attributable to Amedisys, Inc. of $130.0 million compared to $66.5 million in 2020.
  • Net income attributable to Amedisys, Inc. per diluted share of $3.93 compared to $2.00 in 2020.

Adjusted Year to Date Results*

  • Adjusted EBITDA of $162.4 million compared to $119.7 million in 2020.
  • Adjusted net service revenue of $1,094.8 million compared to $976.7 million in 2020.
  • Adjusted net income attributable to Amedisys, Inc. of $106.9 million compared to $79.3 million in 2020.
  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $3.23 compared to $2.39 in 2020.

* See pages 4 and 16—18 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

Contessa Acquisition

On August 1, 2021, we closed on our previously announced acquisition of Contessa Health (“Contessa”), a leader in hospital-at-home and skilled nursing facility (“SNF”) at-home services. With the addition of Contessa’s risk-based model and claims analytics capabilities, we will be able to bring the essential elements of inpatient hospital and SNF care to patients’ homes, allowing us to become a risk-bearing, home-based care delivery organization, expanding well beyond traditional Home Health and Hospice. Contessa will operate as a wholly owned division of Amedisys and will be reported as a separate operating segment in our future filings.

Updated 2021 Guidance

While our performance in the first half of 2021 has produced strong EBITDA and expanded margins, our Hospice segment is behind in both admission and average daily census growth. The COVID-19 pandemic has put pressure on our ability to hire and retain business development employees at a level needed to achieve our internal growth targets. Throughout 2020 and into 2021, we have been mindful of our need to deliver results, and we have a history of managing our costs. However, with our recent acquisition activity, we believe that there is a significant opportunity to grow our Hospice segment which has required us to invest in leadership and continue to hire clinical employees to support this future growth. Accordingly, and given that our Hospice growth disruption has been isolated to turnover and hiring and is not a systemic issue, we are committed to staffing our Hospice segment for this growth opportunity despite the impact to near term margins.

COVID-19 has impacted the operating metrics typically used to forecast both growth and cost assumptions for both core Amedisys and Contessa. We are basing our guidance on our current operating environment. COVID-19 continues to evolve in both the disease itself as well as disruptions to the healthcare systems and the economy. Any future regulations or government interventions, spike in clinicians and business development staff on quarantine, reduction in elective procedures, change in patient behavior and further decline in senior living occupancy could impact our ability to achieve this guidance.

Based upon the above discussion, our updated 2021 guidance for our core business (excluding any acquisitions closed subsequent to June 30, 2021) is as follows:

  • Adjusted net service revenue is anticipated to be in the range of $2.230 billion to $2.245 billion.
  • Adjusted EBITDA is anticipated to be in the range of $315 million to $320 million.
  • Adjusted diluted earnings per share is anticipated to be in the range of $6.37 to $6.49 based on an estimated 33.1 million shares outstanding.

Our updated 2021 guidance including all acquisition activity closed as of August 4, 2021 is as follows:

  • Adjusted net service revenue is anticipated to be in the range of $2.241 billion to $2.259 billion.
  • Adjusted EBITDA is anticipated to be in the range of $301 million to $308 million.
  • Adjusted diluted earnings per share is anticipated to be in the range of $6.03 to $6.18 based on an estimated 33.1 million shares outstanding.

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

Expansion of Credit Facility

On July 30, 2021, we entered into the Second Amendment to our Credit Agreement (as amended by the Second Amendment, the “Second Amended Credit Agreement”). The Second Amended Credit Agreement provides for a senior secured credit facility in an initial aggregate principal amount of up to $1.0 billion, which includes a $550.0 million Revolving Credit Facility under the Second Amended Credit Agreement, and a term loan facility with a principal amount of up to $450.0 million (the “Amended Term Loan Facility” and collectively with the Revolving Credit Facility, the “Amended Credit Facility”).

Proceeds from the $450.0 million Amended Term Loan Facility were used to pay off the outstanding Term Loan principal balance as of July 30, 2021, as well as to fund 100% of the Contessa acquisition.

Share Repurchase Program

We also announced today that our Board of Directors authorized a share repurchase program, under which we may repurchase up to $100 million of our outstanding common stock through December 31, 2022, to commence upon the completion of the Company’s existing $100 million share repurchase program, approved by our Board of Directors on December 17, 2020 (the “Existing Share Repurchase Program”). Repurchases may be made under the Existing Share Repurchase Program through December 31, 2021.

Paul B. Kusserow, Chairman and Chief Executive Officer stated, “The second quarter of 2021 was an eventful quarter for Amedisys. In our core business, Home Health continued its very strong performance while the lingering and prolonged effect of COVID-19 continued to impact our Hospice business’ ability to grow at previously projected rates. We have identified the issues which are two-fold, business development staff recruitment and retention, and have implemented plans to accelerate performance in the second half of the year. That said, we have revised our full year guidance to reflect these impacts.

I am also very excited about the closing of the Contessa acquisition. Contessa’s industry leading Hospital at Home and SNF at Home platform, along with their advanced Medicare Advantage claims analytics, underwriting capabilities and risk-taking experience, combined with our nationwide, highest quality, Home Health and Hospice platform creates a truly differentiated, tech-enabled, risk-taking, higher-acuity, home-based care delivery asset—one that materially differentiates Amedisys and positions us differently with Medicare Advantage plans. I’d like to welcome all of the Contessa employees to the Amedisys family.

We also have expanded our credit facility giving us access to $1 billion via a term loan and revolver. This should strongly indicate our appetite to do additional Home Health and Hospice acquisitions.

Finally, our Board of Directors has authorized an additional $100 million stock buy-back program that we will deploy opportunistically. It makes sense to have this tool available as part of our capital deployment strategy and again, does not prevent us from doing any deals we currently have in the pipeline.

I’d like to take a moment to thank all of the nearly 21,000 Amedisys employees for their continued dedication, efforts and tireless work throughout this quarter and the entirety of the pandemic. It is humbling to see the incredible care you provide to your patients wherever they call home and makes me proud to work for such a service and quality driven organization.”

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, 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, August 5, 2021, 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 September 5, 2021 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13721553.

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 protests or civil unrest, our ability to integrate, manage and keep our information systems secure, our ability to realize the anticipated benefits of acquisitions, 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
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,
  2021
  2020
  2021
  2020
Net service revenue $ 564,166     $ 485,059     $ 1,101,310     $ 976,744  
Other operating income   4,603       22,780       13,304       22,780  
Cost of service, excluding depreciation and amortization   308,691       295,228       605,894       580,965  
General and administrative expenses:        
Salaries and benefits   114,335       105,617       230,160       207,183  
Non-cash compensation   6,156       6,725       13,463       12,634  
Other   54,731       44,003       103,837       93,268  
Depreciation and amortization   6,721       6,334       14,276       11,672  
Operating expenses   490,634       457,907       967,630       905,722  
Operating income   78,135       49,932       146,984       93,802  
Other income (expense):        
Interest income   25       214       49       227  
Interest expense   (1,932 )     (2,752 )     (4,004 )     (5,983 )
Equity in earnings from equity method investments   1,370       487       2,488       964  
Gain (loss) on equity method investments   31,092       (2,980 )     31,092       (2,980 )
Miscellaneous, net   475       277       763       540  
Total other income (expense), net   31,030       (4,754 )     30,388       (7,232 )
Income before income taxes   109,165       45,178       177,372       86,570  
Income tax expense   (28,546 )     (10,031 )     (46,461 )     (19,377 )
Net income   80,619       35,147       130,911       67,193  
Net income attributable to noncontrolling interests   (470 )     (473 )     (892 )     (717 )
Net income attributable to Amedisys, Inc. $ 80,149     $ 34,674     $ 130,019     $ 66,476  
Basic earnings per common share:        
Net income attributable to Amedisys, Inc. common stockholders $ 2.46     $ 1.07     $ 3.98     $ 2.05  
Weighted average shares outstanding   32,588       32,412       32,684       32,371  
Diluted earnings per common share:        
Net income attributable to Amedisys, Inc. common stockholders $ 2.43     $ 1.04     $ 3.93     $ 2.00  
Weighted average shares outstanding   32,981       33,285       33,085       33,259  
                               


 
AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
     
  June 30, 2021
(unaudited)
  December 31,
2020
ASSETS          
Current assets:    
Cash and cash equivalents $ 91,646     $ 81,808  
Restricted cash   1,000       1,549  
Patient accounts receivable   278,216       255,145  
Prepaid expenses   11,979       10,217  
Other current assets   8,124       13,265  
Total current assets   390,965       361,984  
Property and equipment, net of accumulated depreciation of $98,552 and $95,024   20,986       23,719  
Operating lease right of use assets   95,034       93,440  
Goodwill   936,772       932,685  
Intangible assets, net of accumulated amortization of $15,842 and $22,973   66,432       74,183  
Deferred income taxes   25,271       47,987  
Other assets   64,103       33,200  
Total assets $ 1,599,563     $ 1,567,198  
     
LIABILITIES AND EQUITY    
Current liabilities:    
Accounts payable $ 36,668     $ 42,674  
Payroll and employee benefits   147,017       146,929  
Accrued expenses   166,157       166,192  
Provider relief fund advance   58,328       60,000  
Current portion of long-term obligations   10,160       10,496  
Current portion of operating lease liabilities   30,893       30,046  
Total current liabilities   449,223       456,337  
Long-term obligations, less current portion   179,415       204,511  
Operating lease liabilities, less current portion   63,152       61,987  
Other long-term obligations   31,886       33,622  
Total liabilities   723,676       756,457  
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; 37,553,355 and 37,470,212 shares issued; and 32,576,829 and 32,814,278 shares outstanding   38       38  
Additional paid-in capital   714,334       698,287  
Treasury stock, at cost 4,976,526 and 4,655,934 shares of common stock   (400,110 )     (319,092 )
Retained earnings   560,010       429,991  
Total Amedisys, Inc. stockholders’ equity   874,272       809,224  
Noncontrolling interests   1,615       1,517  
Total equity   875,887       810,741  
Total liabilities and equity $ 1,599,563     $ 1,567,198  
               


 
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,
   2021    2020    2021    2020
Cash Flows from Operating Activities:        
Net income $ 80,619     $ 35,147     $ 130,911     $ 67,193  
Adjustments to reconcile net income to net cash provided by operating activities:        
Depreciation and amortization   6,721       6,334       14,276       11,672  
Non-cash compensation   6,156       6,725       13,463       12,634  
Amortization and impairment of operating lease right of use assets   9,852       9,500       19,702       18,558  
(Gain) loss on disposal of property and equipment   (6 )     (149 )     8       (94 )
(Gain) loss on equity method investments   (31,092 )     2,980       (31,092 )     2,980  
Write-off of other comprehensive income                     (15 )
Deferred income taxes   15,305       (5,264 )     22,716       (4,036 )
Equity in earnings from equity method investments   (1,370 )     (487 )     (2,488 )     (964 )
Amortization of deferred debt issuance costs/debt discount   216       217       432       437  
Return on equity method investments   1,183       375       2,683       2,744  
Changes in operating assets and liabilities, net of impact of acquisitions:        
Patient accounts receivable   (2,339 )     34,456       (22,787 )     8,997  
Other current assets   6,434       2,287       3,560       (3,469 )
Other assets   63       (1,092 )     (52 )     (675 )
Accounts payable   (3,156 )     (3,779 )     (6,530 )     (6,452 )
Accrued expenses   (9,997 )     38,326       (1,627 )     27,990  
Other long-term obligations   (928 )     17,686       (1,736 )     20,746  
Operating lease liabilities   (8,941 )     (8,233 )     (17,955 )     (16,365 )
Operating lease right of use assets   (762 )     (1,107 )     (1,524 )     (1,924 )
Net cash provided by operating activities   67,958       133,922       121,960       139,957  
Cash Flows from Investing Activities:        
Proceeds from sale of deferred compensation plan assets   6       5       25       21  
Proceeds from sale of property and equipment         68       42       80  
Purchases of property and equipment   (1,325 )     (267 )     (2,943 )     (1,701 )
Investments in equity method investees         (875 )           (875 )
Proceeds from sale of equity method investment         17,876             17,876  
Acquisitions of businesses, net of cash acquired   (2,503 )     (230,374 )     (2,503 )     (299,723 )
Net cash used in investing activities   (3,822 )     (213,567 )     (5,379 )     (284,322 )
Cash Flows from Financing Activities:                              
Proceeds from issuance of stock upon exercise of stock options   259       1,763       623       2,947  
Proceeds from issuance of stock to employee stock purchase plan   913       826       1,961       1,686  
Shares withheld to pay taxes on non-cash compensation   (170 )     (2,334 )     (6,944 )     (6,384 )
Noncontrolling interest distribution   (276 )     (12 )     (794 )     (372 )
Proceeds from borrowings under revolving line of credit   174,000       237,000       389,200       424,500  
Repayments of borrowings under revolving line of credit   (224,000 )     (222,000 )     (410,200 )     (259,500 )
Principal payments of long-term obligations   (2,700 )     (3,083 )     (5,392 )     (4,675 )
Purchase of company stock   (1,188 )           (74,074 )      
Provider relief fund advance   3,328       70,000       (1,672 )     70,000  
Net cash (used in) provided by financing activities   (49,834 )     82,160       (107,292 )     228,202  
Net increase in cash, cash equivalents and restricted cash   14,302       2,515       9,289       83,837  
Cash, cash equivalents and restricted cash at beginning of period   78,344       177,812       83,357       96,490  
Cash, cash equivalents and restricted cash at end of period $ 92,646     $ 180,327     $ 92,646     $ 180,327  
Supplemental Disclosures of Cash Flow Information:        
Cash paid for interest $ 903     $ 1,537     $ 1,914     $ 3,292  
Cash paid for income taxes, net of refunds received $ 7,696     $ 2,881     $ 8,667     $ 8,153  
Cash paid for operating lease liabilities $ 9,703     $ 9,340     $ 19,479     $ 18,289  
Cash paid for finance lease liabilities $ 514     $ 487     $ 1,017     $ 986  
Supplemental Disclosures of Non-Cash Activity:        
Right of use assets obtained in exchange for operating lease liabilities $ 10,141     $ 12,454     $ 20,689     $ 18,891  
Right of use assets obtained in exchange for finance lease liabilities $ 350     $ 233     $ 527     $ 487  
Reductions to right of use assets resulting from reductions to operating lease liabilities $ 625     $ 248     $ 904     $ 407  
Days revenue outstanding (1)   42.7       42.0       42.7       42.0  

(1) Our calculation of days revenue outstanding, net is derived by dividing our ending patient accounts receivable at June 30, 2021 and 2020 by our average daily net patient service revenue for the three-month periods ended June 30, 2021 and 2020, 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,
   2021    2020
Financial Information (in millions) :    
Medicare $ 234.8     $ 192.9  
Non-Medicare   114.5       97.3  
Net service revenue   349.3       290.2  
Other operating income   2.3       15.1  
Cost of service   190.4       184.0  
Gross margin   161.2       121.3  
Other operating expenses   82.5       73.1  
Operating income $ 78.7     $ 48.2  
Same Store Growth (1):    
Medicare revenue   22 %     (12 %)
Non-Medicare revenue   18 %     (2 %)
Total admissions   20 %     (9 %)
Total volume (2) (6)   12 %     (3 %)
Key Statistical Data—Total (3):    
Admissions   89,371       74,327  
Recertifications (6)   46,014       46,758  
Total volume (6)   135,385       121,085  
Medicare completed episodes   79,188       68,660  
Average Medicare revenue per completed episode (4) $ 2,986     $ 2,818  
Medicare visits per completed episode (5)   14.2       15.4  
Visiting Clinician Cost per Visit $ 91.24     $ 93.17  
Clinical Manager Cost per Visit $ 9.31     $ 9.42  
Total Cost per Visit $ 100.55     $ 102.59  
Visits   1,894,006       1,793,652  


     
  For the Six-Month Periods
Ended June 30,
   2021    2020
Financial Information (in millions) :    
Medicare $ 456.2     $ 396.8  
Non-Medicare   221.7       197.0  
Net service revenue   677.9       593.8  
Other operating income   7.3       15.1  
Cost of service   373.4       363.8  
Gross margin   311.8       245.1  
Other operating expenses   163.6       149.8  
Operating income $ 148.2     $ 95.3  
Same Store Growth (1):    
Medicare revenue   15 %     (8 %)
Non-Medicare revenue   13 %     %
Total admissions   12 %     (3 %)
Total volume (2)   9 %     (1 %)
Key Statistical Data—Total (3):    
Admissions   179,201       160,302  
Recertifications (6)   89,825       86,625  
Total volume (6)   269,026       246,927  
Medicare completed episodes   154,520       144,296  
Average Medicare revenue per completed episode (4) $ 2,959     $ 2,774  
Medicare visits per completed episode (5)   14.1       15.6  
Visiting Clinician Cost per Visit $ 90.79     $ 88.41  
Clinical Manager Cost per Visit $ 9.40     $ 9.19  
Total Cost per Visit $ 100.19     $ 97.60  
Visits   3,726,918       3,727,097  
               

(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. 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, start-ups 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 reflects 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 June 30,
   2021     2020
Financial Information (in millions):    
Medicare $ 186.9     $ 167.0  
Non-Medicare   11.0       10.1  
Net service revenue   197.9       177.1  
Other operating income   2.3       7.2  
Cost of service   105.2       97.2  
Gross margin   95.0       87.1  
Other operating expenses   49.1       41.4  
Operating income $ 45.9     $ 45.7  
Same Store Growth (1):    
Medicare revenue   2 %     4 %
Hospice admissions   2 %     (1 %)
Average daily census   (3 %)     %
Key Statistical Data - Total (2):    
Hospice admissions   12,675       11,411  
Average daily census   13,254       12,513  
Revenue per day, net $ 164.10     $ 155.51  
Cost of service per day $ 87.17     $ 85.34  
Average discharge length of stay   97       94  
               


     
  For the Six-Month Periods
Ended June 30,
   2021    2020
Financial Information (in millions):    
Medicare $ 368.4     $ 327.5  
Non-Medicare   21.0       19.0  
Net service revenue   389.4       346.5  
Other operating income   6.0       7.2  
Cost of service   206.8       189.0  
Gross margin   188.6       164.7  
Other operating expenses   96.2       80.7  
Operating income $ 92.4     $ 84.0  
Same Store Growth (1):    
Medicare revenue   %     5 %
Hospice admissions   3 %     %
Average daily census   (3 %)     2 %
Key Statistical Data - Total (2):    
Hospice admissions   26,358       22,729  
Average daily census   13,287       12,279  
Revenue per day, net $ 161.93     $ 155.04  
Cost of service per day $ 85.99     $ 84.58  
Average discharge length of stay   95       96  
               

(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. 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, start-ups and denovos.

Segment Information - Personal Care

     
  For the Three-Month Periods
Ended June 30,
   2021
   2020
Financial Information (in millions):          
Medicare $   $
Non-Medicare   17.0     17.7
Net service revenue   17.0     17.7
Other operating income       0.5
Cost of service   13.1     14.1
Gross margin   3.9     4.1
Other operating expenses   3.2     3.0
Operating income $ 0.7   $ 1.1
Key Statistical Data - Total (1):    
Billable hours   609,301     642,720
Clients served   9,371     9,956
Shifts   260,897     282,207
Revenue per hour $ 27.95   $ 27.58
Revenue per shift $ 65.29   $ 62.80
Hours per shift   2.3     2.3
           


     
  For the Six-Month Periods
Ended June 30,
   2021
   2020
Financial Information (in millions):    
Medicare $   $
Non-Medicare   34.0     36.4
Net service revenue   34.0     36.4
Other operating income       0.5
Cost of service   25.7     28.2
Gross margin   8.3     8.7
Other operating expenses   6.3     6.4
Operating income $ 2.0   $ 2.3
Key Statistical Data - Total (1):    
Billable hours   1,216,738     1,394,797
Clients served   10,908     12,936
Shifts   518,506     615,671
Revenue per hour $ 27.96   $ 26.12
Revenue per shift $ 65.60   $ 59.17
Hours per shift   2.3     2.3
           

(1) Total includes acquisitions, start-ups and denovos.

Segment Information - Corporate

     
  For the Three-Month Periods
Ended June 30,
   2021
   2020
Financial Information (in millions):    
Other operating expenses $ 42.4   $ 40.3
Depreciation and amortization   4.8     4.8
Total operating expenses $ 47.2   $ 45.1
     


     
  For the Six-Month Periods
Ended June 30,
  2021
  2020
Financial Information (in millions):    
Other operating expenses $ 84.9   $ 79.2
Depreciation and amortization   10.7     8.6
     
Total operating expenses $ 95.6   $ 87.8
     

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,
  2021
  2020
  2021
  2020
Net income attributable to Amedisys, Inc. $ 80,149     $ 34,674     $ 130,019     $ 66,476  
Add:        
Income tax expense   28,546       10,031       46,461       19,377  
Interest expense, net   1,907       2,538       3,955       5,756  
Depreciation and amortization   6,721       6,334       14,276       11,672  
Certain items (1)   (33,010 )     13,313       (31,298 )     17,349  
Interest component of certain items (1)   (469 )     (446 )     (986 )     (892 )
Adjusted EBITDA (2) (7) $ 83,844     $ 66,444     $ 162,427     $ 119,738  
         

Adjusted Net Service Revenue Reconciliation:

         
  For the Three-
Month Periods
Ended June 30,
  For the Six-
Month Periods
Ended June 30,
  2021
  2020
  2021
  2020
Net service revenue $ 564,166     $ 485,059   $ 1,101,310     $ 976,744
Add:        
Certain items (1)   (6,541 )         (6,541 )    
Adjusted net service revenue (3) (7) $ 557,625     $ 485,059   $ 1,094,769     $ 976,744
         

Adjusted Other Operating Income Reconciliation:

         
  For the Three-
Month Periods
Ended June 30,
  For the Six-
Month Periods
Ended June 30,
   2021    2020    2021    2020
Other operating income $ 4,603     $ 22,780     $ 13,304     $ 22,780  
Add:        
Certain items (1)   (4,603 )     (22,780 )     (13,304 )     (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,
  2021
  2020
  2021
  2020
Net income attributable to Amedisys, Inc. $ 80,149     $ 34,674   $ 130,019     $ 66,476
Add:        
Certain items (1)   (24,428 )     9,852     (23,161 )     12,839
Adjusted net income attributable to Amedisys, Inc. (5) (7) $ 55,721     $ 44,526   $ 106,858     $ 79,315
         

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,
  2021   2020
  2021   2020
Net income attributable to Amedisys, Inc. common stockholders per diluted share $ 2.43     $ 1.04   $ 3.93     $ 2.00
Add:        
Certain items (1)   (0.74 )     0.30     (0.70 )     0.39
Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (6) (7) $ 1.69     $ 1.34   $ 3.23     $ 2.39
                           

(1) The following details the certain items for the three and six-month periods ended June 30, 2021 and 2020:

Certain Items:

     
  For the Three-Month Period
Ended June 30, 2021
  For the Six-Month Period
Ended June 30, 2021
  (Income) Expense
  (Income) Expense
Certain Items Impacting Net Service Revenue:    
Contingency accrual $ (6,541 )     (6,541 )
Certain Items Impacting Other Operating Income:    
CARES Act & State COVID-19 grants   (4,603 )     (13,304 )
Certain Items Impacting Cost of Service:    
COVID-19 costs   4,464       12,944  
Certain Items Impacting Operating Expenses:    
Acquisition and integration costs   2,293       3,492  
COVID-19 costs   160       377  
Pre-acquisition legal settlement   1,825       1,825  
Certain Items Impacting Total Other Income (Expense):    
Interest component of certain items   469       986  
Other (income) expense, net   (31,077 )     (31,077 )
Total $ (33,010 )   $ (31,298 )
Net of tax $ (24,428 )   $ (23,161 )
Diluted EPS $ (0.74 )   $ (0.70 )
     


     
  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  
     

(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. 


Primary Logo

Source: Amedisys, Inc.

Contact Information

Amedisys Corporate Headquarters
3854 American Way
Baton Rouge, LA 70816
(225) 292-2031
Amedisys Executive Office
209 10th Avenue S.
Suite 512
Nashville, TN 37203
Request Information