BATON ROUGE, La., May 02, 2017 (GLOBE NEWSWIRE) -- Amedisys, Inc. (NASDAQ:AMED) today reported its financial results for the three month period ended March 31, 2017.

Three Month Periods Ended March 31, 2017 and 2016
  • Net income attributable to Amedisys, Inc. of $15.1 million compared to $6.2 million in 2016.
  • Net income attributable to Amedisys, Inc. per diluted share of $0.44 per diluted share compared to $0.19 in 2016.

Adjusted Quarterly Results*
  • Adjusted EBITDA of $32.0 million compared to $23.9 million in 2016.
  • Adjusted net income attributable to Amedisys, Inc. of $16.0 million compared to $10.9 million in 2016.
  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $0.47 compared to $0.33 in 2016.

* See table entitled Reconciliation of Non-GAAP Financial Measures to GAAP Measures for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

Tenet Healthcare Acquisition

On May 1, 2017, Amedisys closed on its previously announced acquisition of Tenet Healthcare's (NYSE:THC) home health and hospice operations in Arizona, Illinois, Massachusetts and Texas, for a purchase price of $20.5 million.

Paul B. Kusserow, President and Chief Executive Officer stated, "I am pleased with our first quarter results as we continued to make progress in all four key areas of our strategy. While we did see softer volumes than anticipated in home health, continued strong performance from our hospice segment as well as disciplined cost control helped to deliver significant increases in revenue, EBITDA, earnings per share and cash flow from operations compared to the first quarter of 2016. Our primary focus as a company for the remainder of 2017 will be on organic admissions growth in home health, and we have developed detailed market-by-market plans to reach our organic growth goals in the second half of this year. In addition, our M&A pipeline is strong and we have a flexible balance sheet that will allow us to capitalize on attractive opportunities. We remain focused on continuing to deliver value to our patients, referral sources, and, ultimately, our shareholders."

We urge caution in considering the current trends disclosed in this press release. The home health and hospice industry is 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, 2016, and subsequent Quarterly Reports on Form 10-Q, and current reports on Form 8-K which can be found on the SEC's internet website, http://www.sec.gov, and our internet website, http://www.amedisys.com.

Earnings Call and Webcast Information

Amedisys will host a conference call on Wednesday, May 3, 2017, at 11:00 a.m. ET to discuss its first 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 June 3, 2017 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13660189.

A live webcast of the call will be accessible through our website on our Investor Relations section at the following web address: http://investors.amedisys.com.

Non-GAAP Financial Measures

This press release includes reconciliations of the most comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the U.S. ("GAAP") to non-GAAP financial measures. The non-GAAP financial measures as defined under SEC rules are as follows: (1) Adjusted EBITDA, defined as net income attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization, excluding certain items; (2) adjusted net income attributable to Amedisys, Inc., defined as net income attributable to Amedisys, Inc. excluding certain items; and (3) 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 them to manage a chronic disease; or hospice care at the end of life. More than 2,200 hospitals and 61,900 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 16,000 employees, in 421 care centers in 34 states, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 385,000 patients 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, financial 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," "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 healthcare industry, our ability to integrate our personal care segment into our business efficiently, 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 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, our ability to integrate, manage and keep our information systems secure, our ability to comply with requirements stipulated in our corporate integrity agreement and changes in law or developments with respect to any litigation relating to the Company, including various other matters, many of which are beyond our control.

Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on any forward-looking statement as a prediction of future events. We expressly disclaim any obligation or undertaking and we do not intend to release publicly any updates or changes in our expectations concerning the forward-looking statements or any changes in events, conditions or circumstances upon which any forward-looking statement may be based, except as required by law.

     
AMEDISYS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Amounts in thousands, except per share data) (Unaudited)
  For the Three Month Period Ended March 31,  
    2017         2016    
Net service revenue  $   370,458     $   348,817  
Cost of service, excluding depreciation and amortization      215,785         201,837  
General and administrative expenses:                 
Salaries and benefits      74,459         76,717  
Non-cash compensation      3,874         4,070  
Other      40,417         46,717  
Provision for doubtful accounts      6,341         3,940  
Depreciation and amortization      4,417         4,473  
                 
Operating expenses      345,293         337,754  
                 
Operating income      25,165         11,063  
Other expense:                 
Interest income      19         22  
Interest expense      (1,068 )       (1,112 )
Equity in loss from equity method investments      (106 )       (5 )
Miscellaneous, net      1,112         735  
                 
   Total other expense, net      (43 )       (360 )
Income before income taxes      25,122         10,703  
Income tax expense      (9,923 )       (4,388 )
                 
Net income      15,199         6,315  
Net income attributable to noncontrolling interests      (69 )       (102 )
                 
Net income attributable to Amedisys, Inc.  $   15,130     $   6,213  
                 
Basic earnings per common share:     
Net income attributable to Amedisys, Inc. common stockholders  $   0.45     $   0.19  
                 
Weighted average shares outstanding      33,443         32,920  
                 
Diluted earnings per common share:     
Net income attributable to Amedisys, Inc. common stockholders  $   0.44     $   0.19  
                 
Weighted average shares outstanding      34,073         33,508  

 
AMEDISYS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET (Amounts in thousands, except share data)
      March 31, 2017         December 31, 2016    
      (Unaudited)          
ASSETS                
Current assets:                
Cash and cash equivalents   $   48,334     $   30,197  
Patient accounts receivable, net of allowance for doubtful accounts of $19,249 and $17,716       172,707         166,056  
Prepaid expenses       10,097         7,397  
Other current assets       11,964         11,260  
                 
   Total current assets       243,102         214,910  
                 
Property and equipment, net of accumulated depreciation of $142,185 and $138,650       36,676         36,999  
Goodwill       292,793         288,957  
Intangible assets, net of accumulated amortization of $28,557 and $27,864       46,220         46,755  
Deferred income taxes       98,943         107,940  
Other assets, net       38,894         38,468  
                 
   Total assets   $   756,628     $   734,029  
                 
LIABILITIES AND EQUITY                
Current liabilities:                
Accounts payable   $   29,444     $   30,358  
Payroll and employee benefits       81,909         82,480  
Accrued expenses       65,663         63,290  
Current portion of long-term obligations       6,888         5,220  
                 
   Total current liabilities       183,904         181,348  
Long-term obligations, less current portion       85,472         87,809  
Other long-term obligations       4,306         3,730  
                 
   Total liabilities       273,682         272,887  
                 
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; 35,364,752 and   35,253,577 shares issued; and 33,693,027 and 33,597,215 shares outstanding       35         35  
Additional paid-in capital       544,428         537,472  
Treasury stock at cost, 1,671,725 and 1,656,362 shares of common stock       (47,531 )       (46,774 )
Accumulated other comprehensive income       15         15  
Retained earnings       (14,967 )       (30,545 )
                 
   Total Amedisys, Inc. stockholders' equity       481,980         460,203  
Noncontrolling interests       966         939  
                 
   Total equity       482,946         461,142  
                 
   Total liabilities and equity   $   756,628     $   734,029  
                 

 
AMEDISYS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING, NET (Amounts in thousands, except statistical information) (Unaudited)
    For the Three Month Period Ended March 31,  
      2017         2016    
Cash Flows from Operating Activities:                  
Net income    $ 15,199     $ 6,315  
Adjustments to reconcile net income to net cash provided by operating activities:                
Depreciation and amortization        4,417         4,473  
Provision for doubtful accounts        6,341         3,940  
Non-cash compensation        3,874         4,070  
401(k) employer match        2,227         1,737  
(Gain) loss on disposal of property and equipment        (16 )       360  
Deferred income taxes        9,445         4,038  
Equity in loss from equity method investments       106         5  
Amortization of deferred debt issuance costs        185         185  
Return on equity investment        150         362  
Changes in operating assets and liabilities, net of impact of acquisitions:                  
Patient accounts receivable        (12,493 )       (27,689 )
Other current assets        (3,403 )       7,845  
Other assets        (990 )       (2,775 )
Accounts payable        93         9,098  
Accrued expenses        1,386         801  
Other long-term obligations        576         (521 )
                   
Net cash provided by operating activities        27,097         12,244  
                   
Cash Flows from Investing Activities:                  
Proceeds from sale of deferred compensation plan assets        565         230  
Purchase of investment        (256 )       —   
Purchases of property and equipment        (4,385 )       (6,702 )
Acquisitions of businesses, net of cash acquired        (4,099 )       (27,682 )
                   
Net cash used in investing activities       (8,175 )       (34,154 )
                   
Cash Flows from Financing Activities:                  
Proceeds from issuance of stock upon exercise of stock options and warrants        653         —   
Proceeds from issuance of stock to employee stock purchase plan        612         638  
Shares withheld upon stock vesting        (758 )       —   
Tax benefit from stock options exercised and restricted stock vesting        —          159  
Non-controlling interest distribution        (42 )       —   
Proceeds from revolving line of credit        —          40,500  
Repayments of revolving line of credit       —          (25,500 )
Principal payments of long-term obligations        (1,250 )       (1,250 )
Purchase of company stock        —          (12,315 )
                   
Net cash (used in) provided by financing activities        (785 )       2,232  
                   
Net increase (decrease) in cash and cash equivalents        18,137         (19,678 )
Cash and cash equivalents at beginning of period        30,197         27,502  
                   
Cash and cash equivalents at end of period    $   48,334     $   7,824  
                   
Supplemental Disclosures of Cash Flow Information:                  
Cash paid for interest    $   706     $   648  
                   
Cash paid for income taxes, net of refunds received    $   284     $   (7 )
                   
Days revenue outstanding, net (1)        40.5         38.9  
 
(1)      Our calculation of days revenue outstanding, net at March 31, 2017 and 2016 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 March 31, 2017 and 2016, respectively.

       
AMEDISYS, INC. AND SUBSIDIARIES SEGMENT INFORMATION (Amounts in millions, except statistical information) (Unaudited)
Segment Information - Home Health
    For the Three Month Period Ended March 31,  
      2017         2016    
Financial Information (in millions):                
Medicare    $   198.7     $   206.8  
Non-Medicare        72.6         65.9  
                 
Net service revenue        271.3         272.7  
Cost of service        163.0         160.8  
                 
Gross margin        108.3         111.9  
Other operating expenses        72.6         75.7  
                 
Operating income    $   35.7     $   36.2  
                 
Key Statistical Data:                
                 
Medicare:                
Same Store (1):                
Revenue        (3 %)       4 %
Admissions        (1 %)       4 %
Recertifications        (3 %)       4 %
Total (2):                
Admissions        49,628         50,418  
Recertifications        25,043         26,023  
Completed episodes        71,864         72,032  
Visits        1,263,098         1,311,371  
Average revenue per completed episode (3)    $   2,782     $   2,812  
Visits per completed episode (4)        16.9         17.4  
                 
Non-Medicare:                
Same Store (1):                
Revenue        11 %       22 %
Admissions:                
Episodic        35 %       11 %
Non-Episodic        (1 %)       10 %
Recertifications        5 %       23 %
Total (2):                
Admissions        27,333         25,567  
Recertifications        10,224         9,826  
Visits        555,548         527,969  
                 
Total (2):                
Visiting Clinician Cost per Visit    $   81.08     $   79.14  
Clinical Manager Cost per Visit    $   8.53     $   8.31  
                 
Total Cost per Visit    $   89.61     $   87.45  
                 
Visits        1,818,646         1,839,340  

(1)      Same store information represents the percent increase (decrease) in our Medicare and Non-Medicare revenue, admissions or recertifications for the period as a percent of the Medicare and Non-Medicare revenue, admissions or recertifications of the prior period. (2)      Total includes acquisitions. (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.
       
Segment Information - Hospice
    For the Three Month Period Ended March 31,  
      2017         2016    
Financial Information (in millions):                
Medicare    $   80.7     $   68.7  
Non-Medicare        4.9         4.3  
                 
Net service revenue        85.6         73.0  
Cost of service        42.4         38.8  
                 
Gross margin        43.2         34.2  
Other operating expenses        20.8         17.9  
                 
Operating income    $   22.4     $   16.3  
                 
                 
Key Statistical Data:                
Same Store (1):                
Medicare revenue        17 %       22 %
Non-Medicare revenue        15 %       16 %
Hospice admissions        20 %       19 %
Average daily census        16 %       22 %
Total (2):                
Hospice admissions        6,505         5,430  
Average daily census        6,365         5,507  
Revenue per day, net    $   149.41     $   145.65  
Cost of service per day    $   74.08     $   77.36  
Average discharge length of stay        92         96  

(1)      Same store information represents the percent increase (decrease) in our Medicare and Non-Medicare revenue, Hospice admissions or average daily census for the period as a percent of the Medicare and Non-Medicare revenue, Hospice admissions or average daily census of the prior period. (2)      Total includes acquisitions.
 
Segment Information - Personal Care
    For the Three Month Period Ended March 31,  
      2017         2016  
Financial Information (in millions):              
Medicare   $   —      $   — 
Non-Medicare       13.6         3.1
               
Net service revenue       13.6         3.1
Cost of service       10.4         2.2
               
Gross margin       3.2         0.9
Other operating expenses       3.4         0.4
               
Operating (loss) income   $   (0.2 )   $   0.5
               
Key Statistical Data:              
Billable hours       588,216         137,883
Clients served       8,822         5,017

 
  Segment Information - Corporate
    For the Three Month Period Ended March 31,  
      2017         2016  
Financial Information (in millions):              
Other operating expenses   $   29.5     $   39.0
Depreciation and amortization       3.2         2.9
               
Total operating expenses   $   32.7     $   41.9
               

       
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"):
    For the Three Month Period Ended March 31,  
      2017         2016  
Net income attributable to Amedisys, Inc.   $   15,130     $   6,213
Add:              
Income tax expense       9,923         4,388
Interest expense, net       1,049         1,090
Depreciation and amortization       4,417         4,473
Certain items (1)       1,466         7,766
               
Adjusted EBITDA (2) (5)   $   31,985     $   23,930
               

 
Adjusted Net Income Attributable to Amedisys, Inc. Reconciliation:
    For the Three Month Period Ended March 31,  
      2017         2016  
Net income attributable to Amedisys, Inc.   $   15,130     $   6,213
Add:              
Certain items (1)       887         4,698
               
Adjusted net income attributable to Amedisys,   Inc. (3) (5)   $   16,017     $   10,911
               

 
Adjusted Net Income Attributable to Amedisys, Inc. per Diluted Share:
    For the Three Month Period Ended March 31,  
      2017         2016  
Net income attributable to Amedisys, Inc.   common stockholders per diluted share   $   0.44     $   0.19
Add:              
Certain items (1)       0.03         0.14
               
Adjusted net income attributable to   Amedisys, Inc. common stockholders per   diluted share (4) (5)   $   0.47     $   0.33
               

(1)      The following details the certain items for the three month periods ended March 31, 2017 and 2016:
 
Certain Items:  
    For the Three Month Period Ended March 31, 2017           For the Three Month Period Ended March 31, 2016   
    (Income) Expense         (Income) Expense     
Certain Items Impacting Operating   Expenses:                  
HCHB implementation   $   —        $   2,440  
Acquisition costs       682           1,704  
Legal fees - non-routine       123           1,517  
Restructuring activity       —            1,762  
Data center relocation       714           448  
Certain Items Impacting Total Other   Income (Expense):                  
Legal settlements       (674 )         (541 )
Miscellaneous, other (income) expense, net       621           436  
                   
Total   $   1,466       $   7,766  
                   
Net of tax   $   887       $   4,698  
                   
Diluted EPS   $   0.03       $   0.14  
                   

(2)      Adjusted EBITDA is defined as net income attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization, excluding certain items as described in footnote 1. (3)      Adjusted net 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. (4)      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. (5)      Adjusted EBITDA, 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 measure 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.

 

Contact:Investor Contact:Amedisys, Inc.David CastilleManaging Director, Treasury/Finance(225) 299-3391david.castille@amedisys.comMedia Contact:Amedisys, Inc.Kendra KimmonsManaging Director, Marketing & Communications(225) 299-3720kendra.kimmons@amedisys.com

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