AMEDISYS INC - FORM 8-K - EX-99.1 - PRESS RELEASE DATED AUGUST 7, 2012

Attached files

file	filename
8-K - FORM 8-K - AMEDISYS INC	d391343d8k.htm

Exhibit 99.1

LOGO


Contacts:	Investor Contact:	Media Contact:
	Amedisys, Inc.	Amedisys, Inc.
	Kevin LeBlanc	Jacqueline Chen Valencia
	Director of Investor	Senior Vice President
	Relations	Marketing & Communications
	(225) 292-2031	(225) 299-3688
	kevin.leblanc@amedisys.com	jacqueline.chen@amedisys.com

AMEDISYS REPORTS SECOND QUARTER FINANCIAL RESULTS

AMEDISYS TO HOST CONFERENCE CALL TODAY AT 10:00 A.M. ET

BATON ROUGE, Louisiana (August 7, 2012) — Amedisys, Inc. (NASDAQ: AMED), a leading home health and hospice company, today reported its financial results for the second quarter ended June 30, 2012.

Three-Month Periods Ended June 30, 2012 and 2011

•

Net service revenue of $378.5 million compared to $368.4 million in 2011, an increase of $10.1 million or 2.7%.

•

Net income from continuing operations attributable to Amedisys, Inc., of $8.0 million compared to $22.9 million in 2011, a decrease of 65.1%.

•

Net income from continuing operations attributable to Amedisys, Inc. per diluted share of $0.27 compared to $0.79 per diluted share in 2011, a decrease of 65.8%.

•

Earnings before interest, taxes, depreciation and amortization attributable to continuing operations (“EBITDA”) of $25.6 million compared to $49.6 million in 2011, a decrease of 48.4%.

Six-Month Periods Ended June 30, 2012 and 2011

•

Net service revenue of $749.3 million compared to $727.7 million in 2011, an increase of $21.6 million or 3.0%.

•

Net income from continuing operations attributable to Amedisys, Inc., of $14.5 million compared to $39.9 million in 2011, a decrease of 63.7%.

•

Net income from continuing operations attributable to Amedisys, Inc. per diluted share of $0.48 compared to $1.38 per diluted share in 2011, a decrease of 65.2%.

•

EBITDA of $48.8 million compared to $88.9 million in 2011, a decrease of 45.1%.

William F. Borne, Chief Executive Officer stated, “We are encouraged by our results for the quarter and are on pace to meet our plans for the year. The organizational changes we have implemented are showing positive returns. We continue to focus on providing excellent care to our many home health and hospice patients while navigating cost pressures and reform legislation. There are many opportunities in front of us and we are positioning Amedisys to capitalize on those prospects.”

2012 Guidance

•

Net service revenue is anticipated to be in the range of $1.490 billion to $1.525 billion.

•

Diluted earnings per share is expected to be in the range of $0.95 and $1.10 based on an estimated 30.2 million shares outstanding.

This guidance excludes the effects of any future acquisitions, if any are made; effects of any share repurchases; any non-recurring costs or charges that may be incurred during the year or the impact of any future Medicare rate changes.

We urge caution in considering the current trends and 2012 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, 2011, 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.

Earnings Call and Webcast Information

To participate in the conference call, please dial (888) 710-4011 (Toll free) or (913) 312-1495 (Toll) a few minutes before 10:00 a.m. ET on Tuesday, August 7, 2012. A replay of the conference call will be available through August 14, 2012. The replay dial in number is (888) 203-1112 (Toll free) or (719) 457-0820 (Toll). The replay pin number is 5164963.

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

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 measure as defined under SEC rules: EBITDA, defined as net income from continuing operations attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization. In accordance with SEC rules, we have provided herein a reconciliation of this non-GAAP financial measure to the most directly comparable measure under GAAP. Management believes that this is a useful gauge of our performance and is a common measure 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


	June 30, 2012			December 31, 2011
ASSETS
Current assets:
Cash and cash equivalents	$	37,158		$	48,004
Patient accounts receivable, net of allowance for doubtful accounts of $19,603 and $17,438		163,161			148,061
Prepaid expenses		11,180			11,321
Other current assets		24,801			24,630

Total current assets		236,300			232,016

Property and equipment, net of accumulated depreciation of $96,891, and $94,266		146,207			148,536
Goodwill		343,353			334,695
Intangible assets, net of accumulated amortization of $22,024 and $20,611		49,335			50,067
Deferred tax asset		59,498			68,649
Other assets, net		23,606			24,322

Total assets	$	858,299		$	858,285

LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable	$	24,425		$	25,475
Payroll and employee benefits		86,590			82,130
Accrued expenses		62,218			68,493
Current portion of long-term obligations		60,700			33,888
Current portion of deferred income taxes		11,071			11,748

Total current liabilities		245,004			221,734
Long-term obligations, less current portion		67,701			111,551
Other long-term obligations		4,274			4,852

Total liabilities		316,979			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; 32,110,141 and 31,017,363 shares issued; and 31,328,783 and 30,328,549 shares outstanding		31			30
Additional paid-in capital		441,479			432,390
Treasury stock at cost, 781,358 and 688,814 shares of common stock		(17,014	)		(15,770	)
Accumulated other comprehensive income		15			13
Retained earnings		115,507			102,205

Total Amedisys, Inc. stockholders’ equity		540,018			518,868
Noncontrolling interests		1,302			1,280

Total equity		541,320			520,148

Total liabilities and equity	$	858,299		$	858,285

Income Statement Information


	For the Three-Month Periods Ended June 30,						For the Six-Month Periods Ended June 30,
	2012			2011			2012			2011
Net service revenue	$	378,498		$	368,424		$	749,331		$	727,738
Cost of service, excluding depreciation and amortization		212,266			189,426			420,772			376,730
General and administrative expenses:
Salaries and benefits		86,499			78,695			173,576			162,083
Non-cash compensation		2,298			3,205			4,780			5,115
Other		47,286			45,221			91,680			89,517
Provision for doubtful accounts		4,695			2,266			10,558			5,380
Depreciation and amortization		9,905			9,550			19,959			18,730

Operating expenses		362,949			328,363			721,325			657,555

Operating income		15,549			40,061			28,006			70,183
Other (expense) income:
Interest income		27			89			42			207
Interest expense		(2,002	)		(2,254	)		(4,076	)		(4,506	)
Equity in earnings from equity investments		396			466			701			789
Miscellaneous, net		(134	)		(376	)		295			(671	)

Total other expense, net		(1,713	)		(2,075	)		(3,038	)		(4,181	)

Income before income taxes		13,836			37,986			24,968			66,002
Income tax expense		(5,742	)		(14,997	)		(10,362	)		(26,055	)

Income from continuing operations		8,094			22,989			14,606			39,947
Discontinued operations, net of tax		(128	)		(1,278	)		(1,177	)		(2,912	)

Net income		7,966			21,711			13,429			37,035
Net income attributable to noncontrolling interests		(84	)		(55	)		(127	)		(91	)

Net income attributable to Amedisys, Inc.	$	7,882		$	21,656		$	13,302		$	36,944

Basic earnings per common share:
Income from continuing operations attributable to Amedisys, Inc. common stockholders	$	0.27		$	0.80		$	0.49		$	1.40
Discontinued operations, net of tax		(0.01	)		(0.04	)		(0.04	)		(0.10	)

Net income attributable to Amedisys, Inc. common stockholders	$	0.26		$	0.76		$	0.45		$	1.30

Weighted average shares outstanding		29,780			28,625			29,584			28,495

Diluted earnings per common share:
Income from continuing operations attributable to Amedisys, Inc. common stockholders	$	0.27		$	0.79		$	0.48		$	1.38
Discontinued operations, net of tax		(0.01	)		(0.04	)		(0.04	)		(0.10	)

Net income attributable to Amedisys, Inc. common stockholders	$	0.26		$	0.75		$	0.44		$	1.28

Weighted average shares outstanding		30,026			29,010			29,903			28,938

Amounts attributable to Amedisys, Inc. common stockholders:
Income from continuing operations	$	8,010		$	22,934		$	14,479		$	39,856
Discontinued operations, net of tax		(128	)		(1,278	)		(1,177	)		(2,912	)

Net income	$	7,882		$	21,656		$	13,302		$	36,944

Cash Flow Information


	For the Three-Month Periods ended June 30,						For the Six-Month Periods ended June 30,
	2012			2011			2012			2011
Net cash provided by operating activities	$	23,151		$	23,959		$	35,022		$	76,513
Net cash used in investing activities		(17,878	)		(135,589	)		(27,931	)		(151,535	)
Net cash used in financing activities		(9,405	)		(9,106	)		(17,937	)		(17,141	)

Net decrease in cash and cash equivalents		(4,132	)		(120,736	)		(10,846	)		(92,163	)
Cash and cash equivalents at beginning of period		41,290			148,868			48,004			120,295

Cash and cash equivalents at end of period	$	37,158		$	28,132		$	37,158		$	28,132

Supplemental Information - Home Health


	For the Three-Month Periods Ended June 30,
	2012									2011
	Same Store			Start-ups/ Acquisitions			Total			Same Store		Other (1)			Total
*Financial Information (in millions):*
Episodic-based revenue	$	274.5		$	1.4		$	275.9		$	297.9	$	5.2		$	303.1
Non-episodic revenue		28.9			—			28.9			18.3		0.2			18.5

Net service revenue		303.4			1.4			304.8			316.2		5.4			321.6
Episodic-based revenue growth (2)		(8%	)					(9%	)

Cost of service		173.3			1.0			174.3			160.9		3.3			164.2

Gross margin		130.1			0.4			130.5			155.3		2.1			157.4
Other operating expenses		75.1			0.7			75.8			73.2		3.2			76.4

Operating income	$	55.0		$	(0.3	)	$	54.7		$	82.1	$	(1.1	)	$	81.0

*Key Statistical Data:*
Admissions:
Episodic-based		58,725			343			59,068			56,775		1,120			57,895
Non-episodic		15,229			19			15,248			10,321		135			10,456

Total admissions		73,954			362			74,316			67,096		1,255			68,351

Episodic-based admission growth (2)		3%						2%

Recertifications:
Episodic-based		40,378			132			40,510			43,172		620			43,792
Non-episodic		5,549			11			5,560			4,339		41			4,380

Total recertifications		45,927			143			46,070			47,511		661			48,172

Episodic-based recertification growth (2)		(6%	)					(7%	)

Completed Episodes:
Episodic-based		95,916			380			96,296			97,589		2,012			99,601

Visits:
Episodic-based		1,864,017			9,552			1,873,569			1,871,575		32,873			1,904,448
Non-episodic		288,316			347			288,663			199,091		1,991			201,082

Total visits		2,152,333			9,899			2,162,232			2,070,666		34,864			2,105,530

Cost per Visit	$	80.52		$	100.60		$	80.61		$	77.68	$	95.59		$	77.98

Average episodic-based revenue per completed episode (3)	$	2,859		$	3,061		$	2,860		$	3,031	$	3,087		$	3,032

Episodic-based visits per completed episode (4)		19.1			17.7			19.1			18.9		18.3			18.9


	For the Six-Month Periods Ended June 30,
	2012									2011
	Same Store			Start-ups/ Acquisitions			Total			Same Store		Other (1)			Total
*Financial Information (in millions):*
Episodic-based revenue	$	550.4		$	2.9		$	553.3		$	593.6	$	12.2		$	605.8
Non-episodic revenue		52.7			0.2			52.9			36.3		0.3			36.6

Net service revenue		603.1			3.1			606.2			629.9		12.5			642.4
Episodic-based revenue growth (2)		(7	%)					(9	%)

Cost of service		344.2			2.1			346.3			323.9		7.4			331.3

Gross margin		258.9			1.0			259.9			306.0		5.1			311.1
Other operating expenses		152.9			1.6			154.5			148.1		7.9			156.0

Operating income	$	106.0		$	(0.6	)	$	105.4		$	157.9	$	(2.8	)	$	155.1

*Key Statistical Data:*
Admissions:
Episodic-based		118,183			759			118,942			116,571		2,731			119,302
Non-episodic		29,597			122			29,719			20,726		276			21,002

Total admissions		147,780			881			148,661			137,297		3,007			140,304

Episodic-based admission growth (2)		1	%					—

Recertifications:
Episodic-based		81,026			283			81,309			85,707		1,346			87,053
Non-episodic		10,256			30			10,286			8,543		78			8,621

Total recertifications		91,282			313			91,595			94,250		1,424			95,674

Episodic-based recertification growth (2)		(5	%)					(7	%)

Completed Episodes:
Episodic-based		190,213			806			191,019			193,357		4,260			197,617

Visits:
Episodic-based		3,734,936			18,785			3,753,721			3,736,817		76,426			3,813,243
Non-episodic		536,362			2,020			538,382			395,072		3,818			398,890

Total visits		4,271,298			20,805			4,292,103			4,131,889		80,244			4,212,133

Cost per Visit	$	80.59		$	101.30		$	80.69		$	78.36	$	93.13		$	78.64

Average episodic-based revenue per completed episode (3)	$	2,856		$	3,061		$	2,857		$	3,028	$	3,135		$	3,030

Episodic-based visits per completed episode (4)		18.9			17.8			18.9			18.7		18.9			18.7

(1)	Care centers for the prior period which are not considered same store care centers (i.e., care centers consolidated in prior period or unopened startups).

(2)	Episodic-based revenue, admissions or recertifications growth is the percent increase in our episodic-based revenue, admissions or recertifications for the period as a percent of the episodic-based revenue, admissions or recertifications of the prior period.

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

(4)	Episodic-based visits per completed episode are the home health episodic-based visits on completed episodes divided by the home health episodic-based episodes completed during the period.


*Supplemental Information - Hospice*
	For the Three-Month Periods Ended June 30,
	2012								2011
	Same Store			Start-ups/ Acquisitions		Total			Same Store		Other (1)			Total
*Financial Information (in millions):*
Medicare revenue	$	52.9		$	16.9	$	69.8		$	43.2	$	0.5		$	43.7
Non-Medicare revenue		3.0			0.9		3.9			3.1		—			3.1

Net service revenue		55.9			17.8		73.7			46.3		0.5			46.8
Medicare revenue growth (2)		22	%				60	%

Cost of service		27.7			10.3		38.0			24.8		0.4			25.2

Gross margin		28.2			7.5		35.7			21.5		0.1			21.6
Other operating expenses		10.4			4.0		14.4			8.9		0.6			9.5

Operating income	$	17.8		$	3.5	$	21.3		$	12.6	$	(0.5	)	$	12.1

*Key Statistical Data:*
Hospice admits		3,846			1,045		4,891			3,658		44			3,702
Hospice days		393,662			106,564		500,226			336,818		4,051			340,869
Average daily census		4,326			1,171		5,497			3,701		45			3,746
Revenue per day	$	142.10		$	166.76	$	147.36		$	137.39	$	133.78		$	137.34
Cost of service per day	$	70.13		$	96.66	$	75.78		$	73.52	$	112.66		$	73.99
Average length of stay		97			88		95			86		77			86


	For the Six-Month Periods Ended June 30,
	2012								2011
	Same Store			Start-ups/ Acquisitions		Total			Same Store		Other (1)			Total
*Financial Information (in millions):*
Medicare revenue	$	94.8		$	40.3	$	135.1		$	78.9	$	0.9		$	79.8
Non-Medicare revenue		5.8			2.2		8.0			5.4		0.1			5.5

Net service revenue		100.6			42.5		143.1			84.3		1.0			85.3
Medicare revenue growth (2)		20	%				69	%

Cost of service		50.7			23.8		74.5			44.4		1.0			45.4

Gross margin		49.9			18.7		68.6			39.9		—			39.9
Other operating expenses		19.1			9.1		28.2			16.1		1.4			17.5

Operating income	$	30.8		$	9.6	$	40.4		$	23.8	$	(1.4	)	$	22.4

*Key Statistical Data:*
Hospice admits		7,144			2,649		9,793			6,768		97			6,865
Hospice days		721,547			250,928		972,475			614,840		7,324			622,164
Average daily census		3,965			1,378		5,343			3,397		40			3,437
Revenue per day	$	139.47		$	169.49	$	147.22		$	137.14	$	136.53		$	137.13
Cost of service per day	$	70.06		$	94.74	$	76.42		$	72.26	$	138.43		$	73.04
Average length of stay		94			90		93			87		67			87

(1)	Care centers for the prior period which are not considered same store care centers (i.e. care centers consolidated in prior period or unopened startups).

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

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 Ended June 30,				For the Six-Month Periods Ended June 30,
	2012		2011		2012		2011
Key Statistical Data:
General
Number of home health care centers		437		485		437		485
Number of hospice care centers		93		90		93		90
Number of care centers acquired (1)		6		22		6		22
Number of care centers opened as start-up locations (1)		—		2		2		8
Days revenue outstanding, net (2)		38.0		36.0		38.0		36.0

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

(2)

Our calculation of days revenue outstanding, net at June 30, 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 June 30, 2012 and 2011, respectively.

Earnings From Continuing Operations Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)


	For the Three-Month Periods Ended June 30,				For the Six-Month Periods Ended June 30,
	2012		2011		2012		2011
Net income from continuing operations attributable to Amedisys, Inc.	$	8,010	$	22,934	$	14,479	$	39,856
Add:
Provision for income taxes		5,742		14,997		10,362		26,055
Interest expense, net		1,975		2,165		4,034		4,299
Depreciation and amortization		9,905		9,550		19,959		18,730

EBITDA (1)	$	25,632	$	49,646	$	48,834	$	88,940

(1)

EBITDA is defined as net income 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.

Attached files

Stock widget

Investing forum

AMEDISYS INC Reports