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| 8-K - 8-K - AMEDISYS INC | d924255d8k.htm |
 Right care. Right time. Right place
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Investor Presentation
May 2015
EXHIBIT 99.1 |
 Right care. Right time. Right place
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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 (225) 292-2031.
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.
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.
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Amedisys Snapshot
Founded in 1982, publicly
listed 1994
395 care centers in 34
states
13,000 employees
57,000 patients currently
on census
2014 revenue of $1.2
billion
355,000 patients seen
annually
Over 7.5 million annual
patient visits
Amedisys Home Health Care Centers (316 locations)
Amedisys Hospice Care Centers (79 locations)
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Overview |
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($ in millions, except per share data)
1Q14
2Q14
3Q14
4Q14
1Q15
Net Revenue
$299
$305
$300
$301
$302
Gross Margin %
41.0%
43.4%
43.3%
43.0%
43.3%
Total G&A Expenses
126
118
114
113
111
EBITDA
$5
$22
$24
$23
$26
EBITDA Margin
1.8%
7.3%
7.9%
7.6%
8.7%
EPS
($0.07)
$0.25
$0.28
$0.27
$0.30
Summary Adjusted Financials –
Quarterly
1
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Business Overview
Business
$ (in millions) /
% of Revenue
Revenue per
Visit / Revenue
per Day
Gross Margin %
Reimbursement Type
Home Health
Episodic
$207 / 69%
$160
46.1%
60-day episode of care
Non-Medicare Per Visit
$35 / 11%
$110
21.6%
Per visit
Total Home Health
$241 / 80%
Hospice
$60 / 20%
$147
46.4%
98% routine care; daily rate
Total
$302 / 100%
Based on 1Q15 financials. Gross margin computed by subtracting cost per visit from
revenue per visit in home health and cost per day from hospice revenue per day
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Amedisys Vision
5
high margins
Strengthen & grow the core
Lead Industry
consolidation
Become employer of choice
Outstanding clinical outcomes
Extend the core
Simplify
Op Model
Build
Capacity
Clinical
Excellence
Organic
Growth
Adjacent
Growth
Options
Deliver superior patient outcomes using a simple, efficient, and
clinically driven operating model to drive growth and lead in a
consolidating industry
Leading cost structure driving |
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Operating Platform Transition –
HomeCare HomeBase
•
AMS3 testing resulted in significant operational disruption
•
Conducted third-party comparison of AMS3 to commercially available
solutions •
HomeCare HomeBase presents a compelling alternative to proprietary
development at lower cost
•
Company-wide implementation targeted in 18-24 months
•
Anticipate
$20
million
in
annual
G&A
savings
after
implementation
and
reduction
in
annual
capital
expenditures
below
$10
million
beginning
in
2016
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Strategic Plan –
Moving to Execution
Goals
Improved Clinical Quality
Movement to value-based reimbursement
Continued margin expansion
Operational streamlining and standardization
Maximizing efficiency of field clinicians
Leverage operational scale
Growth
Organic
Increasing capacity
Optimizing business development efforts
Inorganic / M&A
Near-term –
tuck-ins
Long-term –
regional expansion and adjacencies
7
People
Managed Care
Processes and Workflow
Business Development
Amedisys Priorities
IT Optimization
Clinical Distinction and Protocols |
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Selective tuck-ins
while
platform and operating processes are
being optimized
More aggressive acquisitions
once our cost structure provides us an
advantage in the form of operating synergies
Short Term:
Tuck-in
Focus
Long Term:
Strategic
Accretive
Acquisitions
Expand our footprint strategically
Counties in CON states
Key referral partners (e.g.,
hospitals / hospital systems)
Home care / hospice alignment
Local density to enhance efficiency
(e.g., scheduling)
New geographies
Scale to leverage
investments
M&A Strategy –
Short and Long-Term
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Adjusted
Cash
Flow
2
9
($ in Millions)
1Q14
2Q14
3Q14
4Q14
1Q15
Operating cash flow
(4)
27
31
29
30
Changes in working capital
(2)
(3)
(6)
11
(16)
Operating cash flow, net
(6)
24
25
40
14
Capital Expenditures
(6)
(4)
(1)
(2)
(2)
Required Debt Repayments
(3)
(3)
(3)
(3)
(3)
Free Cash Flow
(15)
17
21
34
9
($ in Millions)
LTM
Free Cash Flow
81
Required Debt Repayments
12
Other Sources
4
LTM Debt Reduction
$97 |
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Balance Sheet
Assets ($ in MM)
12/31/14
3/31/15
Cash
$8
$3
Accounts Receivable, net
99
111
Property and Equipment
137
57
Goodwill
206
206
Deferred Tax Asset
125
147
Other
95
99
Total Assets
670
623
Liabilities and Equity
Other Liabilities
$155
$156
Long-Term Debt
118
100
Equity
397
367
Total Liabilities and Equity
670
623
Total Leverage Ratio
1.5x
1.1x
Days Sales Outstanding
29
32
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($ in millions)
1Q14
4Q14
1Q15
Net Revenue
$237
$240
$241
Gross Margin %
39.5%
42.1%
42.6%
Key Operating Statistics
Same store Medicare revenue growth
(7%)
4%
6%
Same store non-Medicare revenue growth
1%
26%
20%
Medicare recert rate
38%
37%
37%
Cost per visit
$90.28
$86.29
$86.33
Home
Health
Segment
1
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($ in millions)
1Q14
4Q14
1Q15
Net Revenue
$62
$61
$60
Gross Margin %
46.8%
46.4%
46.3%
Key Operating Statistics
Same store ADC growth
(6%)
(3%)
1%
Same store admission growth
(5%)
2%
7%
Revenue per day
$145.95
$147.16
$147.48
Cost per day
$77.47
$78.62
$79.12
Hospice
Segment
1
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Contact Information
Ronnie LaBorde
Vice Chairman and Chief Financial Officer
ronnie.laborde@amedisys.com
David Castille
Managing Director, Finance
david.castille@amedisys.com
Amedisys, Inc.
5959 S. Sherwood Forest Blvd.
Baton Rouge, LA 70816
Office: 225.292.2031
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Endnotes
1.
The financial results for the three month periods ended March 31, 2014, June 30,
2014, September 30, 2014, December 31, 2014 and March 31, 2015 are adjusted
for certain items and should be considered a non-GAAP financial measure. A reconciliation of these non-
GAAP financial measures is included in the corresponding 8-K detailing quarterly results for each respective reporting period.
2.
Operating cash flow detailed in this schedule is adjusted for DOJ settlement
payments made in 2Q14 ($115 million) and 4Q14 ($35 million).
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