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.

(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

(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

(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

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

Segment Information - Corporate

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:

Adjusted Net Service Revenue Reconciliation:

Adjusted Other Operating Income Reconciliation:

Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:

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

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

Certain Items:

(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.