Attached files
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| 8-K - FORM 8-K - AMEDISYS INC | d8k.htm |
| EX-99.2 - RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL MEASURES - AMEDISYS INC | dex992.htm |
 Investor Presentation
Leading Modern Home Health Care & Hospice
(September 2010)
Exhibit 99.1 |
 Leading Modern Home Health & Hospice
Forward-looking
statements
This presentation may include forward-looking statements as defined by the
Private Securities Litigation Reform Act of 1995. These forward-looking
statements are based upon current expectations and assumptions about our
business that are subject to a variety of risks and uncertainties that could
cause actual
results
to
differ
materially
from
those
described
in
this
presentation.
You
should not rely on forward-looking statements as a prediction of future events.
Additional
information
regarding
factors
that
could
cause
actual
results
to
differ
materially from those discussed in any forward-looking statements are described
in reports and registration statements we file with the SEC, including our
Annual Report on Form 10-K and subsequent Quarterly Reports on Form
10-Q and Current Reports on Form 8-K, copies of which are available
on the Amedisys internet
website
http://www.amedisys.com
or
by
contacting
the
Amedisys
Investor
Relations department at (800) 467-2662.
We disclaim any obligation to update any 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.
2
www.amedisys.com
NASDAQ: AMED
We encourage everyone to visit the
Investors Section of our website at
www.amedisys.com, where we
have posted additional important
information such as press releases,
profiles concerning our business
and clinical operations and control
processes, and SEC filings.
We intend to use our website to
expedite public access to time-
critical information regarding the
Company in advance of or in lieu of
distributing a press release or a
filing with the SEC disclosing the
same information. |
 Leading Modern Home Health & Hospice
Management team
William F. Borne, Chairman and CEO
Founder and CEO since 1982
28 years leading the industry
Michael D. Snow, Chief Operating Officer
30 years leading health care operations
Wellmont, HealthSouth, HCA
Tim Barfield, Chief Development Officer
15 years of corporate development experience
Gov. Bobby Jindal
, Vinson & Elkins, The Shaw Group
Dale E. Redman, CPA, Chief Financial Officer
34 years of senior level financial experience
Winward
Capital, United Companies Financial
3
Jeffrey D. Jeter, Chief Compliance Officer
14 years of health care law and compliance expertise
Former Medicaid prosecutor, LA AG for DOJ
Michael O. Fleming, Chief Medical
Officer 29 years as a family physician
Former President of AAFP, first industry CMO
G. Patrick Thompson, Chief Information Officer
23 years of corporate administration experience
Arthur Andersen, Turner Industries, The Shaw Group
David R. Bucey, General Counsel
24 years of experience in corporate law
Coca-Cola Company, McKenna Long & Aldridge |
 Leading Modern Home Health & Hospice
Company
overview
1
4
•
Founded in 1982, publicly listed
1994
•
601 locations in 45 states
•
Leading provider of home health
services
-
Services include skilled nursing
and therapy services
•
95% of Home Health revenue is
episodic based (both Medicare &
non-Medicare)
17,600 employees
Home Health:
-
Daily visits = 35,000
-
9.2 million visits run rate in 2010
Hospice:
-
Average daily census = 2,837
-
Average length of stay = 87 days
2010 revenue guidance = $1.650 billion²
Stats
Revenue Mix
92%
Home Health
Hospice
For the quarter ended June 30, 2010
Provided as of the date of our Form 8-K filed with the Securities and Exchange Commission on
August 9, 2010. 1
2 |
 Leading Modern Home Health & Hospice
Home Health Division
5
•
Industry leader
–
Strong national footprint –
529 locations across
45 states as of June 30
–
$388 million revenue in 2Q 2010
•
Strong clinical quality
•
Experienced divisional leadership
•
World-class technology platform + enhancing
operating platform
•
Well positioned to capitalize on organic and
market opportunities
Point-of-care,
Mercury Doc
Care
Transitions
Advanced
Chronic Care
Management |
 Leading Modern Home Health & Hospice
Hospice Division
6
Point-of-care,
Mercury Doc
(2011)
Essential to the
Care
Continuum
Advanced
Symptom
Management
•
Solid trajectory of internal growth
–
15% YTD growth in 2010; 33% growth over 2009
–
$34 million revenue in 2Q 2010
•
Record number of patient census
–
Average daily census = 2,800+
•
Operational efficiencies and quality care
processes drive strong margins
–
Operating income margin = 21%
•
Partnered with the country’s largest and leading
Home Health company
–
Offering comprehensive continuum of at-home care
–
Collective resources to drive operational and clinical
excellence
–
Cross referral opportunities to drive growth |
 Leading Modern Home Health & Hospice
Rapid growth
In
the
past
two
and
a
half
years
(2007–
2010),
Amedisys
has grown from:
9,000 employees to 17,000
354 sites to more than 600 today
$700M in revenues to $1.65B
today
7
1
Annualized revenue guidance provided as of the date of our Form
8-K filed with the Securities and Exchange
Commission on August 9, 2010.
1 |
 Leading Modern Home Health & Hospice
2010 @ Amedisys
Strengthened management team
Enhancing infrastructure
Portfolio management
Realigning labor mix
Share repurchase
Managing external factors –
SFC, SEC
New CMS Proposed Rules
8
Top to middle
IT, Training, corporate support
Prune out unprofitable sites
Best athlete, continue shift to PPV
Confidence in our earnings potential
Opportunity to highlight value of HH
Opportunity for efficiency, new
growth |
 Leading Modern Home Health & Hospice
The age tsunami is inevitable
9
Between 2000 and
2030, the number of
people age 65+ will
more than double to
72.1 million
Source: Center for Medicare & Medicaid Services, September 2010
Figure 1: Number of Persons 65+
1900 –
2030, numbers in millions
Year (as of July 1) |
 Leading Modern Home Health & Hospice
Medicare market size
10
Source:
CBO's
March
2009
Baseline:
Medicare
home
health
revenue,
offset
by
cuts
in
Health
Care
Reform
Bills.
Kaiser
Family
Foundation
fact sheet August 2010. National Health Expenditure Projections, September
2010. $18
$19
$21
$23
$25
$27
$29
$30
$32
$35
$38
$507
$524
$566
$569
$617
$652
$684
$741
$771
$805
$878
$-
$100
$200
$300
$400
$500
$600
$700
$800
$900
$1,000
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Home Health Spend
Medicare Spend
•
Overall Medicare spend is expected to increase 173% during the next 10 years
•
Medicare home health spend is estimated to increase 211% during this same time
period, but continue to be only a fraction of total Medicare spend
|
 Leading Modern Home Health & Hospice
Our strategy
11
Clinical
Excellence
Growth
Efficiency |
 Leading Modern Home Health & Hospice
Clinical excellence
12
Amedisys
vs. Footprint –
Outcomes December 2009
•
Exceeded or met 11 out of 12 outcomes vs. footprint
•
Awarded $3.5 million in pay for performance demonstration project from CMS
•
Enhancing clinical excellence through better care transitions, investments in
medical director function, and focus on decreasing hospitalizations
52
55
61
72
71
50
67
32
23
66
1
87
44
50
43
61
62
40
55
31
23
65
1
82
0
10
20
30
40
50
60
70
80
90
100
Amedisys
Footprint |
 Leading Modern Home Health & Hospice
Growth
13
Hospice: Aggressive build (current
share is ~1.2%) •
$15 billion industry in the United States (NHPCO)
•
US
hospice
patient
volumes
projected
to
grow
by
40%
over
next
5
years
(NHPCO)
•
Building best hospice in the country based on clinical superiority
•
Duke School of Medicine’s Institute on Care at the End of Life
Home Care: Continued expansion (current share is ~8%)
•Continue
to
differentiate
on
quality,
innovation,
technology
and
scale
•Building
the
only
nationwide
continuum
of
care
platform
–
Advanced
Chronic
Care
Management,
Standardization of Care
•Expand
care
management
programs
–
Behavioral
Health,
Advanced
Wound
Care
•Focus
on
internal
growth
–
Care
Transition
Platform,
Hospital
Partnerships,
strengthening
referral
relationships, better aligning business development and operations
|
 Leading Modern Home Health & Hospice
Growth –
Corporate Development
14
Acquisitions: Home Care
•Continue to review opportunities
•Focused
on
strategic
expansion
–
CON
markets,
footprint
expansion,
market
depth,
hospital
system joint ventures
•Positioned well for increase in opportunities expected in 2011
Acquisitions: Hospice
•Continue
to
review
opportunities
–
robust
pipeline
•Focused
on
geographic
expansion
into
Amedisys
home
health
markets,
and
market
depth
Other:
•Exploring
revenue
diversification
strategies
and
care
management
expansion
opportunities
•Both internally developed or acquired |
 Leading Modern Home Health & Hospice
Efficiency
15
Portfolio Management
•Detailed review of local agency performance
•Exit markets with chronic poor results, limited growth potential, and/or
intense competition •Consolidate overlapping agencies
•Review startup program
Ownership of Results
•Push down authority and responsibility to local, regional, and divisional
leaders •Provide tools to support their success
•More responsive to local market dynamics
Infrastructure Investment
•Continued investment in state-of-the-art operating system
•Upgrading accounting and HR system to Peoplesoft
•Rolling out Hospice Point-of-Care in 2011
|
 Leading Modern Home Health & Hospice
Key differentiators
Clinical quality why we are in business
16
Compliance covers everything we do
Care Centers national distribution
Innovation industry leadership
Technology competitive advantage
|
 Leading Modern Home Health & Hospice
Traditional
•
Assessment/Evaluation at Home
•
Skilled Nursing
•
Rehab
•
Medical Social Services
•
Home Health Aide Services
•
In Home Hospice Services
17 |
 Leading Modern Home Health & Hospice
Modern
Innovative Treatment Modalities
o
Disease Management
o
Medication Management
o
Predictive
Modeling
-
Risk
Stratified
Patient Management
o
Continuous Evaluation/Assessment
o
Care Coordination
o
Multidisciplinary Rehabilitation Services
o
Health Coaching
o
Coumadin Management
o
Balanced
for
Life
-
Fall
Assessment/Prevention
o
Intensive Chronic Care Management
Caregiver Engagement
o
Clinical guidelines/oversight
Technology
o
Telemonitoring
/ Call Center Intervention
o
Point-of-Care Clinical Documentation
o
Physician Data Portal
18 |
 Leading Modern Home Health & Hospice
Why Amedisys?
We are the only
modern Home Health & Hospice provider that….
•
has 600 Care Centers across the country and more than 16,000
skilled clinicians
•
has
the
resources
to
invest
in
advanced
technology,
clinical
track
development and talented people
•
cares for more than 35,000 Americans across the country everyday
and
more
than
500,000
Americans
each
year
19
Amedisys
does the right thing, at the right time, for every patient.
|
 Leading Modern Home Health & Hospice
Financial Review
20 |
 Leading Modern Home Health & Hospice
21
$-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
2004
2005
2006
2007
2008
2009
2010
Projected Revenue
Actual Revenue
EPS
Financial highlights |
 Leading Modern Home Health & Hospice
Adjusted EBITDA is defined as net income attributable to Amedisys, Inc. before provision for
income taxes, net interest (income) expense, and depreciation and amortization plus
certain TLC integration costs. Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, income before income taxes, cash flow from
operating activities, or other traditional indicators of operating performance. This
calculation of adjusted EBITDA may not be comparable to a similarly titled measure
reported by other companies, since not all companies calculate this non-GAAP financial
measure in the same manner. Adjusted diluted earnings per share is defined as diluted
earnings per share plus the earnings per share effect of certain TLC acquisition costs. Adjusted diluted earnings per
share should not be considered as an alternative to, or more meaningful than, income before
income taxes, cash flow from operating activities, or other traditional indicators of
operating performance. This calculation of adjusted diluted earnings per share may not be comparable to a similarly titled measure reported by other
companies, since not all companies calculate this non-GAAP financial measure in the same
manner. 22
Summary financial results
($ in millions, except per share data)
2008
2009
2Q09
2Q10
Net revenue
$1,187.4
$1,513.5
$377.9
$422.3
Period-over-period growth
70.1%
27.5%
20.9%
11.7%
Gross margin
624.8
789.0
199.5
213.0
Percent of revenue
52.6%
52.1%
52.8%
50.4%
CFFO
150.7
247.7
75.8
54.4
Adjusted
EBITDA
181.4
261.8
67.4
63.4
Percent of revenue
15.3%
17.3%
17.8%
15.0%
Adjusted
Fully-diluted
EPS
$3.31
$4.89
$1.27
$1.13
1
2
1
2 |
 Leading Modern Home Health & Hospice
23
Summary performance results
2008
2009
2Q09
2Q10
Agencies at period end
528
586
549
601
Period-over-period growth
49.2%
11.0%
10.2%
9.5%
Total visits
7,004,200
8,702,146
2,185,515
2,320,736
Period-over-period growth
62.8%
24.2%
18.0%
6.2%
Episodic-based admissions
199,371
231,782
58,209
63,076
Period-over-period growth
53.8%
16.3%
8.7%
8.4%
Episodic-based completed
episodes
353,076
411,975
102,209
109,420
Period-over-period growth
60.6%
16.7%
8.5%
7.1%
Episodic-based revenue per
episode
$2,854
$3,166
$3,166
$3,372
Period-over-period growth
7.3%
10.9%
11.4%
6.5% |
 Leading Modern Home Health & Hospice
24
Summary balance sheet
Dec. 31, 2009
Jun. 30, 2010
Assets
Cash
$ 34.5
$ 116.0
Accounts Receivable, Net
150.3
151.9
Property and Equipment
91.9
112.1
Goodwill
786.9
790.2
Other
108.8
99.0
Total Assets
$ 1,172.4
$ 1,269.2
Liabilities and Equity
Debt
$ 215.2
$ 204.1
All Other Liabilities
220.9
237.6
Equity
736.3
827.5
Total Liabilities and Equity
$ 1,172.4
$ 1,269.2
Leverage Ratio
0.8x
0.7x |
 Leading Modern Home Health & Hospice
Our calculation of days revenue outstanding, net at March 31, 2008 is derived by dividing our
ending net patient accounts receivable (i.e. net of estimated revenue adjustments, allowance for
doubtful accounts and excluding the patient accounts receivable assumed in the TLC Health Care
Services, Inc. (“TLC”) and Family Home Health Care, Inc. & Comprehensive Home Healthcare
Services, Inc. (“HMA”) acquisitions) by our average daily net patient revenue,
excluding the results of TLC and HMA for the three-month period ended March 31, 2008.
Our calculation of days revenue outstanding, net is derived by dividing our ending net 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.
25
Days revenue outstanding (DSO)
(1)
47.7
43.7
53.3
46.8
39.1
39.6
43.3
45.2
45.0
46.8
51.0
47.2
40.4
36.9
33.2
33.9
32.6
32.5
25.0
30.0
35.0
40.0
45.0
50.0
55.0
DSO -
Net
(2)
(1)
(2) |
 Leading Modern Home Health & Hospice
26
Liquidity
•
Cash balance at 6/30/10 = $116M
•
Available
line
of
credit
(LOC):
6/30/10
=
$235M
•
2010
Estimated
CFFO
-
Cap
Ex
=
$170M |
 Leading Modern Home Health & Hospice
Guidance excludes the effects of future acquisitions, if they are made.
Provided as of the date of our Form 8-K filed with the Securities and Exchange Commission on
August 9, 2010. Without adjustment for any shares that may be repurchased under our Share
Repurchase Program. 27
Guidance¹
Calendar Year 2010²
Net revenue:
$1.625 -
$1.650 billion
EPS:
$4.20 -
$4.50
Diluted shares³:
28.8 million
1
2
3 |
 Leading Modern Home Health & Hospice
Key references
28
Open Letter to Shareholders:
http://www.amedisys.com/pdf/Letter_to_Shareholders.pdf
Wyatt Matas
Report: (upon request)
kevin.leblanc@amedisys.com
Avalere
Study:
http://www.amedisys.com/pdf/avalere_results_051109.pdf
|
 Leading Modern Home Health & Hospice
Contact information
Kevin B. LeBlanc
Director of Investor Relations
Amedisys, Inc.
5959 S. Sherwood Forest Boulevard
Baton Rouge, LA 70816
Office: 225.292.2031
Fax: 225.295.9653
kevin.leblanc@amedisys.com
29 |