Amedisys Reports Fourth Quarter Financial Results

Amedisys, Inc. (NASDAQ: AMED), a leading home health and hospice company, today reported its financial results for the fourth quarter and year ended December 31, 2012 and issued 2013 guidance.

Three-Month Periods Ended December 31, 2012 and 2011

• After adding back $153.4 million and $11.3 million ($113.9 million and $7.1 million, net of income tax ) or $3.75 and $0.24 per diluted share for certain items* in 2012 and 2011, the following would have been our adjusted results**:

• Net service revenue of $362.9 million compared to $370.3 million in 2011, a decrease of $7.4 million or 2.0%.

• Net income from continuing operations attributable to Amedisys, Inc., of $7.2 million compared to $14.5 million in 2011, a decrease of 50.5%.

• Net income from continuing operations attributable to Amedisys, Inc. per diluted share of $0.23 compared to $0.49 per diluted share in 2011, a decrease of 53.1%.

• Earnings before interest, taxes, depreciation and amortization attributable to continuing operations (“EBITDA”) of $23.3 million compared to $35.9 million in 2011, a decrease of 35.1%.

Twelve-Month Periods Ended December 31, 2012 and 2011

• After adding back $159.5 million and $588.7 million ($115.1 million and $441.7 million, net of income tax) or $3.83 and $15.36 per diluted share for certain items* in 2012 and 2011, the following would have been our adjusted results**:

• Net service revenue of $1,487.9 million compared to $1,463.6 million in 2011, an increase of $24.3 million or 1.7%.

• Net income from continuing operations attributable to Amedisys, Inc., of $32.8 million compared to $66.8 million in 2011, a decrease of 50.9%.

• Net income from continuing operations attributable to Amedisys, Inc. per diluted share of $1.08 compared to $2.29 per diluted share in 2011, a decrease of 52.8%.

• EBITDA of $103.2 million compared to $157.1 million in 2011, a decrease of 34.3%.

William F. Borne, Chief Executive Officer stated, “I’m pleased to report that after appropriate adjustments, we generated $1.00 in earnings per diluted share for the year, falling within the guidance we provided at both the beginning of the year and on our last earnings call. To better reflect core operations and as a basis to present adjusted results going forward, we have further adjusted earnings for legal costs associated with governmental investigations which were incurred in each quarter of the year and tax credits earned in the third quarter. On this basis, we earned $1.08 in earnings per diluted share for the year, compared to $2.29 per diluted share in 2011. In 2012, we faced another year of significant reimbursement cuts, slow industry growth, and limited acquisition opportunities. Yet, in addition to achieving guidance, we had a number of accomplishments including stabilizing our Medicare home health admissions, increasing our managed care business, lowering operating costs in the face of declining volumes, continuing development of our next generation operating system, and improving our capital structure.

“Moving into 2013, in addition to a focus on growth, operational efficiency, and clinical excellence, we are making significant investments in technology and evolving our model of care. This differentiating strategy recognizes the changes taking place within the health care industry. We believe these investments will yield positive long-term results for our patients, our partners, employees and shareholders.”

2013 Guidance

• Net service revenue is anticipated to be in the range of $1.425 billion to $1.45 billion.

• Diluted earnings per share is expected to be in the range of $0.60 to $0.70 based on an estimated 31.5 million shares outstanding.

This guidance includes an estimate of legal costs associated with our on-going government investigations and anticipates that the 2% Medicare sequestration goes into effect April 1, 2013 on any admissions starting on or after that date.

We urge caution in considering the current trends and 2013 guidance disclosed in this press release. The home health and hospice industry is highly competitive and subject to intensive regulations, and trends and guidance 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, 2012, 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 . We disclaim any obligations to update disclosed information on trends.

* See footnote 2 on page 10 for explanation of these certain items.

** See page 9 for the reconciliations of non-GAAP financial measures.

Earnings Call and Webcast Information

To participate in the conference call, please call a few minutes before 10:00 a.m. ET on Tuesday, March 12, 2013, to either (877) 490-9717 (Toll free) or (704) 385-4855 (Toll), use conference ID #15174665. A replay of the conference call will be available through March 19, 2013. The replay dial in number is (855) 859-2056 (Toll free) or (404) 537-3406 (Toll), use conference ID #15174665.

The call will also be available through our website and for seven days thereafter at the following web address: http://investors.amedisys.com.

We are headquartered in Baton Rouge, Louisiana. Our common stock trades on the NASDAQ Global Select Market under the symbol “AMED.”

Additional information

Our company website address is www.amedisys.com. We use our website as a channel of distribution for important company information. Important information, including press releases, analyst 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. We also use our website to expedite public access to time-critical information regarding our company in advance of or in lieu of distributing a press release or a filing with the SEC disclosing the same information. Therefore, investors should look to the Investor Relations subpage of our website for important and time-critical information. Visitors to our website can also register to receive automatic e-mail and other notifications alerting them when new information is made available on the Investor Relations subpage of our website.

Forward-Looking Statements

When included in this press release, words like “believes,” “belief,” “expects,” “plans,” “anticipates,” “intends,” “projects,” “estimates,” “may,” “might,” “would,” “should” and similar expressions are intended to identify forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a variety of risks and uncertainties that could cause actual results to differ materially from those described therein. These risks and uncertainties include, but are not limited to the following: changes in Medicare and other medical payment levels, our ability to open care centers, acquire additional care centers and integrate and operate these care centers effectively, changes in or our failure to comply with existing Federal and State laws or regulations or the inability to comply with new government regulations on a timely basis, competition in the home health 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 attract and retain qualified personnel, changes in payments and covered services due to the economic downturn and deficit spending by Federal and State governments, future cost containment initiatives undertaken by third-party payors, our access to financing due to the volatility and disruption of the capital and credit markets, our ability to meet debt service requirements and comply with covenants in debt agreements, business disruptions due to natural disasters or acts of terrorism, our ability to integrate and manage our information systems, changes in or developments with respect to any litigation or investigations relating to the Company, including the SEC investigation and the U.S. Department of Justice Civil Investigative Demand and 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.

Non-GAAP Financial Measures

This press release includes the following non-GAAP financial measures as defined under SEC rules: EBITDA, defined as net income (loss) from continuing operations attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization, adjusted EBITDA, defined as EBITDA plus certain items, adjusted net service revenue, defined as net service revenue plus certain items, adjusted net income from continuing operations attributable to Amedisys, Inc., defined as net income (loss) from continuing operations attributable to Amedisys, Inc. plus the certain items and adjusted net income from continuing operations attributable to Amedisys, Inc. per diluted share, defined as net income (loss) from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share plus the earnings per share effect of certain items. In accordance with SEC rules, we have provided herein a reconciliation of these non-GAAP financial measures to the most directly comparable measures under GAAP. Management believes that these are useful gauges of our performance and are common measures used in our industry to assess relative financial performance among companies.
 

AMEDISYS, INC. AND SUBSIDIARIES

SELECT CONSOLIDATED FINANCIAL STATEMENT DATA AND SUPPLEMENTAL INFORMATION

(Amounts in thousands, except share, per share data and statistical information)

(Unaudited)

Balance Sheet Information
   
As of December 31,
2012 2011
ASSETS
Current assets:
Cash and cash equivalents $ 14,545 $ 48,004
Patient accounts receivable, net of allowance for doubtful accounts of $20,994 and $17,438 169,172 148,061
Prepaid expenses 10,631 11,321
Other current assets   11,440     24,630  
 
Total current assets 205,788 232,016
Property and equipment, net of accumulated depreciation of $113,154, and $94,266 156,709 148,536
Goodwill 209,594 334,695
Intangible assets, net of accumulated amortization of $23,457 and $20,611 47,050 50,067
Deferred tax asset 92,804 68,649
Other assets, net   18,650     24,322  
 
Total assets $ 730,595   $ 858,285  
 
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable $ 29,175 $ 25,475
Payroll and employee benefits 79,341 82,130
Accrued expenses 54,855 68,493
Current portion of long-term obligations 35,807 33,888
Current portion of deferred income taxes   5,609     11,748  
 
Total current liabilities 204,787 221,734
Long-term obligations, less current portion 66,904 111,551
Other long-term obligations   4,671     4,852  
 
Total liabilities   276,362     338,137  
 
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; 31,876,508 and 30,328,549 shares issued; and 31,086,619 and 29,639,735 shares outstanding 32 30
Additional paid-in capital 450,792 432,390
Treasury stock at cost, 789,889 and 688,814 shares of common stock (17,116 ) (15,770 )
Accumulated other comprehensive income 15 13
Retained earnings   18,617     102,205  
 
Total Amedisys, Inc. stockholders’ equity 452,340 518,868
Noncontrolling interests   1,893     1,280  
 
Total equity   454,233     520,148  
 
Total liabilities and equity $ 730,595   $ 858,285  
 
       

Statement of Operations Information
 

For the Three-Month Periods EndedDecember 31,
For the Years Ended December 31,
2012 2011 2012 2011
Net service revenue $ 362,949 $ 370,279 $ 1,487,905 $ 1,468,305
Cost of service, excluding depreciation and amortization 206,243 201,783 841,146 780,606
General and administrative expenses:
Salaries and benefits 84,325 85,361 339,528 332,536
Non-cash compensation 1,152 27 7,217 8,292
Other 48,573 48,591 188,514 184,819
Provision for doubtful accounts 5,441 3,780 21,676 13,514
Depreciation and amortization 10,004 10,169 39,926 38,558
Goodwill and other intangibles impairment charge   162,103     5,841     162,103     579,955  
 
Operating expenses   517,841     355,552     1,600,110     1,938,280  
 
Operating income (loss) (154,892 ) 14,727 (112,205 ) (469,975 )
Other (expense) income:
Interest income 13 6 65 231
Interest expense (6,111 ) (2,129 ) (12,169 ) (8,822 )
Equity in earnings from equity investments 604 380 1,695 1,494
Miscellaneous, net   3,636     6     3,917     (837 )
 
Total other expense, net   (1,858 )   (1,737 )   (6,492 )   (7,934 )
 
(Loss) income before income taxes (156,750 ) 12,990 (118,697 ) (477,909 )
Income tax (expense) benefit   34,808     (5,555 )   21,397     103,076  
 
(Loss) income from continuing operations (121,942 ) 7,435 (97,300 ) (374,833 )
Discontinued operations, net of tax   (65 )   (3,115 )   (1,283 )   (7,509 )
 
Net (loss) income (122,007 ) 4,320 (98,583 ) (382,342 )
Net loss (income) attributable to noncontrolling interests   15,195     (6 )   14,995     (122 )
 
Net (loss) income attributable to Amedisys, Inc. $ (106,812 ) $ 4,314   $ (83,588 ) $ (382,464 )
 
Basic earnings per common share:
(Loss) income from continuing operations attributable to Amedisys, Inc. common stockholders $ (3.52 ) $ 0.26 $ (2.75 ) $ (13.07 )
Discontinued operations, net of tax       (0.11 )   (0.04 )   (0.26 )
 
Net (loss) income attributable to Amedisys, Inc. common stockholders $ (3.52 ) $ 0.15   $ (2.79 ) $ (13.33 )
 
Weighted average shares outstanding   30,358     29,011     29,896     28,693  
 
Diluted earnings per common share:
(Loss) income from continuing operations attributable to Amedisys, Inc. common stockholders $ (3.52 ) $ 0.25 $ (2.75 ) $ (13.07 )
Discontinued operations, net of tax       (0.10 )   (0.04 )   (0.26 )
 
Net (loss) income attributable to Amedisys, Inc. common stockholders $ (3.52 ) $ 0.15   $ (2.79 ) $ (13.33 )
 
Weighted average shares outstanding   30,358     29,415     29,896     28,693  
 
Amounts attributable to Amedisys, Inc. common stockholders:
(Loss) income from continuing operations $ (106,747 ) $ 7,429 $ (82,305 ) $ (374,955 )
Discontinued operations, net of tax   (65 )   (3,115 )   (1,283 )   (7,509 )
 
Net (loss) income $ (106,812 ) $ 4,314   $ (83,588 ) $ (382,464 )
 
       

Cash Flow Information
 

For the Three-Month Periods EndedDecember 31,
For the Years Ended December 31,
2012 2011 2012 2011
Net cash provided by operating activities $ 12,590 $ 36,917 $ 69,494 $ 141,210
Net cash used in investing activities (19,744 ) (12,047 ) (59,993 ) (180,710 )
Net cash used in financing activities   (17,407 )   (6,328 )   (42,960 )   (32,791 )
 
Net (decrease) increase in cash and cash equivalents (24,561 ) 18,542 (33,459 ) (72,291 )
Cash and cash equivalents at beginning of period   39,106     29,462     48,004     120,295  
 
Cash and cash equivalents at end of period $ 14,545   $ 48,004   $ 14,545   $ 48,004  
 
 

Supplemental Information - Home Health
         
For the Three-Month Periods Ended For theYear EndedDecember 31,2012
March 31,2012 June 30,2012 September 30,2012

December 31,2012
Financial Information (in millions):
Medicare $ 242.4 $ 241.0 $ 236.0 $ 233.2 $ 952.6
Non-Medicare   59.0     63.8     65.1     57.5     245.4  
 
Net service revenue 301.4 304.8 301.1 290.7 1,198.0
Cost of service   172.0     174.3     175.9     168.9     691.1  
 
Gross margin 129.4 130.5 125.2 121.8 506.9
Provision for doubtful accounts 5.0 4.1 4.8 3.9 17.8
Depreciation and amortization 3.5 3.6 3.7 3.1 13.9
Other operating expenses   89.3     86.5     87.3     87.7     350.8  
 
Operating income before impairment (1) $ 31.6   $ 36.3   $ 29.4   $ 27.1   $ 124.4  
 
Key Statistical Data:
Medicare:
Same Store Volume (2)
Revenue (8 )% (9 )% (6 )% (7 )% (7 )%
Admissions (2 )% 2 % 0 % 1 % 0 %
Recertifications (5 )% (7 )% (6 )% (12 )% (8 )%
Admissions 51,153 50,490 49,395 49,552 200,590
Recertifications 35,794 35,299 35,217 32,732 139,042
Completed Episodes 82,204 83,403 81,745 82,223 329,575
Visits 1,625,473 1,620,174 1,571,071 1,490,536 6,307,254
Average revenue per completed episode (3) $ 2,882 $ 2,891 $ 2,869 $ 2,853 $ 2,874
Visits per completed episode (4) 18.6 19.1 18.8 18.4 18.7
Non-Medicare:
Admissions:
Episodic 8,721 8,578 8,592 4,366 30,257
Non-episodic   14,471     15,248     15,570     17,470     62,759  
 
Total 23,192 23,826 24,162 21,836 93,016
Recertifications:
Episodic 5,005 5,211 5,317 2,434 17,967
Non-episodic   4,726     5,560     6,238     7,909     24,433  
 
Total 9,731 10,771 11,555 10,343 42,400
Visits:
Episodic 254,679 253,395 251,670 151,303 911,047
Non-episodic   249,719     288,663     298,524     326,493     1,163,399  
 
Total 504,398 542,058 550,194 477,796 2,074,446
Total:
Cost per Visit $ 80.76 $ 80.61 $ 82.90 $ 85.83 $ 82.45
Visits 2,129,871 2,162,232 2,121,265 1,968,332 8,381,700
 
 

Supplemental Information - Home Health (continued)
         
For the Three-Month Periods Ended

For theYear EndedDecember 31,2011
March 31,2011 June 30,2011 September 30,2011 December 31,2011
Financial Information (in millions):
Medicare $ 268.1 $ 267.2 $ 252.9 $ 249.5 $ 1,037.7
Non-Medicare   52.7     54.4     53.1     52.6     212.8  
 
Net service revenue 320.8 321.6 306.0 302.1 1,250.5
Cost of service   167.1     164.2     167.2     165.5     664.0  
 
Gross margin 153.7 157.4 138.8 136.6 586.5
Provision for doubtful accounts 3.2 2.1 3.9 3.1 12.3
Depreciation and amortization 3.1 3.8 3.6 3.5 14.0
Other operating expenses   85.2     83.0     85.1     86.9     340.2  
 
Operating income before impairment (1) $ 62.2   $ 68.5   $ 46.2   $ 43.1   $ 220.0  
 
Key Statistical Data:
Medicare:
Same Store Volume (2)
Revenue (16 )% (16 )% (15 )% (15 )% (15 )%
Admissions (1 )% (5 )% (6 )% (7 )% (5 )%
Recertifications (13 )% (6 )% (3 )% (5 )% (7 )%
Admissions 53,401 50,385 49,835 48,982 202,603
Recertifications 38,183 38,575 37,949 37,411 152,118
Completed Episodes 86,373 87,528 84,454 84,481 342,836
Visits 1,675,730 1,659,890 1,644,181 1,586,743 6,566,544
Average revenue per completed episode (3) $ 3,055 $ 3,049 $ 2,994 $ 3,010 $ 3,027
Visits per completed episode (4) 18.5 18.9 18.6 18.9 18.7
Non-Medicare:
Admissions:
Episodic 8,006 7,510 7,377 7,903 30,796
Non-episodic   10,546     10,456     10,930     11,152     43,084  
 
Total 18,552 17,966 18,307 19,055 73,880
Recertifications:
Episodic 5,078 5,217 5,378 5,154 20,827
Non-episodic   4,241     4,380     4,277     4,535     17,433  
 
Total 9,319 9,597 9,655 9,689 38,260
Visits:
Episodic 233,065 244,558 236,855 235,412 949,890
Non-episodic   197,808     201,081     203,667     201,809     804,365  
 
Total 430,873 445,639 440,522 437,221 1,754,255
Total:
Cost per Visit $ 79.31 $ 77.98 $ 80.24 $ 81.75 $ 79.80
Visits 2,106,603 2,105,529 2,084,703 2,023,964 8,320,799
 

(1) Operating loss of $134.5 million and $37.2 million on a GAAP basis for the quarter and year ended December 31, 2012, respectively. Operating loss of $527.8 million, operating income of $37.3 million and operating loss of $359.9 million on a GAAP basis for the quarter ended September 30, 2011, the quarter ended December 31, 2011 and the year ended December 31, 2011, respectively.

(2) Medicare revenue, admissions or recertifications growth is the percent increase (decrease) in our Medicare revenue, admissions or recertifications for the period as a percent of the Medicare revenue, admissions or recertifications of the prior period.

(3) Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare completed episode of care.

(4) 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.
 
 

Supplemental Information – Hospice
         
For the Three-Month Periods Ended For theYear EndedDecember 31,2012
March 31,2012 June 30,2012 September 30,2012 December 31,2012
Financial Information (in millions):
Medicare $ 65.3 $ 69.8 $ 70.6 $ 68.1 $ 273.8
Non-Medicare   4.1     3.9     3.9     4.2     16.1  
 
Net service revenue 69.4 73.7 74.5 72.3 289.9
Cost of service   36.5     38.0     38.2     37.3     150.0  
 
Gross margin 32.9 35.7 36.3 35.0 139.9
Provision for doubtful accounts 0.8 0.6 1.0 1.5 3.9
Depreciation and amortization 0.3 0.3 0.5 0.4 1.5
Other operating expenses   16.6     18.0     19.2     18.6     72.4  
 
Operating income before impairment (1) $ 15.2   $ 16.8   $ 15.6   $ 14.5   $ 62.1  
 
Key Statistical Data:
Same store Medicare revenue growth (2) 17 % 22 % 13 % 3 % 13 %
Hospice admits 4,902 4,891 4,706 4,662 19,161
Average daily census 5,190 5,497 5,615 5,405 5,427
Revenue per day $ 147.07 $ 147.36 $ 144.17 $ 145.31 $ 145.94
Cost of service per day $ 77.10 $ 75.78 $ 74.03 $ 74.92 $ 75.43
Average length of stay 91 95 102 105 99
 
         
 
For the Three-Month Periods Ended For theYear EndedDecember 31,2011
March 31,2011 June 30,2011 September 30,2011 December 31,2011
Financial Information (in millions):
Medicare $ 36.1 $ 43.7 $ 60.4 $ 64.3 $ 204.5
Non-Medicare   2.4     3.1     3.9     3.9     13.3  
 
Net service revenue 38.5 46.8 64.3 68.2 217.8
Cost of service   20.2     25.2     34.9     36.3     116.6  
 
Gross margin 18.3 21.6 29.4 31.9 101.2
Provision for doubtful accounts (0.1 ) 0.2 0.4 0.7 1.2
Depreciation and amortization 0.1 0.2 0.2 0.2 0.7
Other operating expenses   9.4     10.8     14.5     15.3     50.0  
 
Operating income $ 8.9   $ 10.4   $ 14.3   $ 15.7   $ 49.3  
 
Key Statistical Data:
Same store Medicare revenue growth (2) 20 % 21 % 17 % 17 % 19 %
Hospice admits 3,163 3,702 4,589 4,435 15,889
Average daily census 3,126 3,746 4,879 5,010 4,197
Revenue per day $ 136.87 $ 137.34 $ 143.17 $ 147.91 $ 142.14
Cost of service per day $ 71.89 $ 73.99 $ 77.32 $ 78.20 $ 75.85
Average length of stay 88 86 86 93 88
 

(1) Operating income of $14.0 million and $61.6 million on a GAAP basis for the quarter and year ended December 31, 2012, respectively.

(2) Same store Medicare revenue growth is the percent increase in our Medicare revenue for the period as a percent of the Medicare revenue of the period.
 
 

Supplemental Information – Corporate
         
For the Three-Month Periods Ended For theYear EndedDecember 31,2012
March 31,2012 June 30,2012 September 30,2012 December 31,2012
Financial Information (in millions):
Depreciation and amortization 6.3 6.0 5.8 6.4 24.5
Other operating expenses   28.0     31.6     24.6     27.9     112.1  
 
Operating income $ (34.3 ) $ (37.6 ) $ (30.4 ) $ (34.3 ) $ (136.6 )
 
         
For the Three-Month Periods Ended For theYear EndedDecember 31,2011
March 31,2011 June 30,2011 September 30,2011 December 31,2011
Financial Information (in millions):
Depreciation and amortization 6.0 5.6 5.9 6.4 23.9
Other operating expenses   35.1     33.2     35.4     31.8     135.5  
 
Operating income $ (41.1 ) $ (38.8 ) $ (41.3 ) $ (38.2 ) $ (159.4 )
 
 

AMEDISYS, INC. AND SUBSIDIARIES

SELECT CONSOLIDATED KEY STATISTICAL DATA AND

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL STATEMENTS

(Amounts in thousands, except key statistical data)

(Unaudited)
       
For the Three-Month Periods EndedDecember 31, For the Year Ended December 31,
2012 2011 2012 2011
Key Statistical Data:
General
Number of home health care centers 435 439 435 439
Number of hospice care centers 97 87 97 87
Number of care centers acquired (1) 1 11 23
Number of care centers opened as start-up locations (1) 4 2 7 12
Days revenue outstanding, net (2) 41.5 35.3 41.5 35.3
 

(1) Includes both home health and hospice care centers.

(2) Our calculation of days revenue outstanding, net at December 31, 2012 and 2011 is derived by dividing our ending patient accounts receivable (i.e., net of estimated revenue adjustments and allowance for doubtful accounts) by our average daily net patient revenue for the three month-period ended December 31, 2012 and 2011, respectively.
 
 

Earnings From Continuing Operations Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) and Adjusted EBITDA
       
For the Three-Month Periods EndedDecember 31, For the Year Ended December 31,
2012 2011 2012 2011
Net (loss) income from continuing operations attributable to Amedisys, Inc. $ (106,747 ) $ 7,429 $ (82,305 ) $ (374,955 )
Add:
Provision for income taxes (34,808 ) 5,555 (21,397 ) (103,076 )
Interest expense, net 6,098 2,123 12,104 8,591
Depreciation and amortization   10,004     10,169     39,926     38,558  
 
EBITDA (1) $ (125,453 ) $ 25,276   $ (51,672 ) $ (430,882 )
 
Add:
Certain items (2) 153,417 11,314 159,507 588,734
Debt fees (2) (4,681 ) (4,681 )
Intangible write-off (2)       (737 )       (737 )
 
Adjusted EBITDA (3) $ 23,283   $ 35,853   $ 103,154   $ 157,115  
 
 

Adjusted Net Service Revenue Reconciliation
       
For the Three-month Periods EndedDecember 31, For the Year Ended December 31,
2012 2011 2012 2011
Net service revenue $ 362,949 $ 370,279 $ 1,487,905 $ 1,468,305
Add:
Certain items (2)         (4,733 )
 
Adjusted net service revenue (4) $ 362,949 $ 370,279 $ 1,487,905 $ 1,463,572  
 
 

Adjusted Net Income From Continuing Operations Attributable to Amedisys, Inc. Reconciliation:
       

For the Three-Month Periods Ended December 31,
For the Year Ended December 31,
2012 2011 2012 2011
Net income (loss) from continuing operations attributable to Amedisys, Inc. $ (106,747 ) $ 7,429 $ (82,305 ) $ (374,955 )
Add:
Certain items (2)   113,944     7,097   115,065     441,739  
 
Adjusted net income from continuing operations attributable to Amedisys, Inc. (5) $ 7,197   $ 14,526 $ 32,760   $ 66,784  
 
 

Adjusted Net Income From Continuing Operations Attributable to Amedisys, Inc. per Diluted Share:
       

For the Three-Month Periods Ended December 31,
For the Year Ended December 31,
2012 2011 2012 2011
Net income (loss) from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share $ (3.52 ) $ 0.25 $ (2.75 ) $ (13.07 )
Add:
Certain items(2)   3.75     0.24   3.83     15.36  
 
Adjusted net income from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share (6) $ 0.23   $ 0.49 $ 1.08   $ 2.29  
 

(1) EBITDA is defined as net income (loss) from continuing operations attributable to Amedisys, Inc. before provision for income taxes, net interest expense, and depreciation and amortization. EBITDA should not be considered as an alternative to, or more meaningful than, income before income taxes, cash flow from operating activities, or other traditional indicators of operating performance. This calculation of EBITDA may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP financial measure in the same manner.
 
 

(2) The following details the certain items for the three-months and years ended December 31, 2012 and 2011 (amounts in thousands, except per share data):
           
For the Three-Month Periods EndedDecember 31, 2012 For the Twelve-Month Periods EndedDecember 31, 2012
(Income)Expense Net Diluted EPS (Income)Expense Net Diluted EPS
Goodwill and other intangibles impairment charge $ 162,103 125,130 4.12 162,103 125,130 4.17
Non-controlling interests portion of impairment charges (14,874 ) (14,874 ) (0.49 ) (14,874 ) (14,874 ) (0.50 )
Severance 2,244 1,337 0.04 2,244 1,318 0.04
Lease terminations 463 276 0.01 463 272 0.01
Debt costs 4,681 2,790 0.09 4,681 2,750 0.09
Lawsuit settlement (3,604 ) (2,148 ) (0.06 ) (3,604 ) (2,117 ) (0.06 )
Legal fees 2,404 1,433 0.04 8,494 4,990 0.16
State tax credits                   (2,404 )   (0.08 )
 
Total $ 153,417   $ 113,944   $ 3.75   $ 159,507   $ 115,065   $ 3.83  
 
           
For the Three-Month Periods EndedDecember 31, 2011 For the Twelve-Month Periods EndedDecember 31, 2011
(Income)Expense Net Diluted EPS Income(Expense) Net Diluted EPS
CMS Bonus $ $ $ $ (4,733 ) $ (2,864 ) $ (0.10 )
Goodwill and other intangibles impairment charge 5,841 3,897 0.13 579,955 438,464 15.25
Valuation allowance adjustment (1,924 ) (0.07 )
Severance 1,559 898 0.04 3,268 1,949 0.07

Exit activities related to continuing operations
2,502 1,489 0.05 3,370 2,014 0.07
Legal fees 1,412 813 0.02 7,125 4,250 0.15
Certain costs               (251 )   (150 )   (0.01 )
 
Total $ 11,314   $ 7,097   $ 0.24   $ 588,734   $ 441,739   $ 15.36  
 

(3) Adjusted EBITDA is defined as net income (loss) from continuing operations attributable to Amedisys, Inc. before provision for income taxes, net interest expense, depreciation and amortization plus certain items as described in footnote 2. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, income before income taxes, cash flow from operating activities, or other traditional indicators of operating performance. This calculation of adjusted EBITDA may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP financial measure in the same manner.

(4) Adjusted net service revenue is defined as net service revenue plus certain items as described in footnote 2. Adjusted net service revenue should not be considered as an alternative to, or more meaningful than, income before income taxes, cash flow from operating activities, or other traditional indicators of operating performance. This calculation of adjusted net service revenue may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP measure in the same manner.

(5) Adjusted net income from continuing operations attributable to Amedisys, Inc. is defined as net income (loss) from continuing operations attributable to Amedisys, Inc. plus certain items as described in footnote 2. Adjusted net income from continuing operations attributable to Amedisys, Inc. should not be considered as an alternative to, or more meaningful than, income before income taxes, cash flow from operating activities, or other traditional indicators of operating performance. This calculation of adjusted net income from continuing operations attributable to Amedisys, Inc. may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP measure in the same manner.

(6) Adjusted net income from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share is defined as diluted earnings (loss) from continuing operations per share plus the earnings per share effect of certain items as described in footnote 2. Adjusted net income from continuing operations 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, cash flow from operating activities, or other traditional indicators or operating performance. This calculation of adjusted net income from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP financial measure in the same manner.
 

Copyright Business Wire 2010

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