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Exhibit 99.1

 

LOGO

AMEDISYS REPORTS SECOND QUARTER 2017 FINANCIAL RESULTS

BATON ROUGE, Louisiana (July 26, 2017) — Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three and six-month periods ended June 30, 2017.

Three Month Periods Ended June 30, 2017 and 2016

 

    Net service revenue increased $18.1 million to $378.8 million compared to $360.7 million in 2016.

 

    Net income attributable to Amedisys, Inc. of $4.5 million compared to $10.7 million in 2016.

 

    Net income attributable to Amedisys, Inc. per diluted share of $0.13 compared to $0.32 in 2016.

Adjusted Quarterly Results*

 

    Adjusted EBITDA of $36.1 million compared to $29.8 million in 2016.

 

    Adjusted net service revenue of $378.8 million compared to $361.7 million in 2016.

 

    Adjusted net income attributable to Amedisys, Inc. of $21.4 million compared to $14.1 million in 2016.

 

    Adjusted net income attributable to Amedisys, Inc. per diluted share of $0.62 compared to $0.42 in 2016.

Six Month Periods Ended June 30, 2017 and 2016

 

    Net service revenue increased $39.7 million to $749.3 million compared to $709.6 million in 2016.

 

    Net income attributable to Amedisys, Inc. of $19.6 million compared to $16.9 million in 2016.

 

    Net income attributable to Amedisys, Inc. per diluted share of $0.57 compared to $0.50 in 2016.

Adjusted Year to Date Results*

 

    Adjusted EBITDA of $68.1 million compared to $53.8 million in 2016.

 

    Adjusted net service revenue of $749.3 million compared to $710.5 million in 2016.

 

    Adjusted net income attributable to Amedisys, Inc. of $37.4 million compared to $25.0 million in 2016.

 

    Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.09 compared to $0.74 in 2016.

 

* See pages 12 and 13 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

Paul B. Kusserow, President and Chief Executive Officer stated, “Overall, I am satisfied with our second quarter results. Our hospice segment continues to exceed expectations and our personal care segment is progressing well as they continue to integrate acquisitions and scale up. We have also made early progress with our strategies to recruit, retain, train and properly incentivize our home health business development staff. While home health volume was expectedly soft, we have identified the issues driving this trend and are executing upon the solutions. In home health, we anticipate returning to organic episodic admission growth in the third quarter. Most importantly, our clinical and outcomes metrics continued to improve across the board as we pursue our goal of clinical distinction to bring value to our patients, their families, our referral sources and payors. Finally, the operational efficiencies we have targeted are being reflected in increased adjusted EBITDA margins and strong cash flow, providing us with a flexible balance sheet to take advantage of strategic, inorganic opportunities. Thanks to our tremendous team, over 16,000 strong, for their continued dedication to serving our patients.”

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 Thursday, July 27, 2017, at 11:00 a.m. ET to discuss its second 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 August 27, 2017 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13666366.

 

1


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 service revenue, defined as net service revenue excluding certain items; (3) adjusted net income attributable to Amedisys, Inc., defined as net income attributable to Amedisys, Inc. excluding certain items; and (4) 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 426 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, investor 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.

 

2


Contact:    Investor Contact:    Media Contact:
   Amedisys, Inc.    Amedisys, Inc.
   David Castille    Kendra Kimmons
   Managing Director, Treasury/Finance    Vice President, Marketing & Communications
   855-259-2046    (225) 299-3720
   IR@amedisys.com    kendra.kimmons@amedisys.com

 

3


AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(Amounts in thousands, except per share data)

(Unaudited)

 

     For the Three Month Period
Ended June 30,
    For the Six Month Period
Ended June 30,
 
     2017     2016     2017     2016  

Net service revenue

   $ 378,821     $ 360,746     $ 749,279     $ 709,563  

Cost of service, excluding depreciation and amortization

     219,765       206,505       435,550       408,342  

General and administrative expenses:

        

Salaries and benefits

     74,943       77,343       149,402       154,060  

Non-cash compensation

     4,356       3,736       8,230       7,806  

Other

     41,617       45,576       82,034       92,293  

Provision for doubtful accounts

     4,651       4,253       10,992       8,193  

Depreciation and amortization

     4,537       4,975       8,954       9,448  

Securities Class Action Lawsuit settlement, net

     28,712       —         28,712       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

     378,581       342,388       723,874       680,142  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     240       18,358       25,405       29,421  

Other income (expense):

        

Interest income

     41       9       60       31  

Interest expense

     (1,197     (1,303     (2,265     (2,415

Equity in earnings from equity method investments

     2,355       363       2,249       358  

Miscellaneous, net

     1,127       658       2,239       1,393  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense), net

     2,326       (273     2,283       (633

Income before income taxes

     2,566       18,085       27,688       28,788  

Income tax benefit (expense)

     1,963       (7,242     (7,960     (11,630
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     4,529       10,843       19,728       17,158  

Net income attributable to noncontrolling interests

     (68     (147     (137     (249
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Amedisys, Inc.

   $ 4,461     $ 10,696     $ 19,591     $ 16,909  
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per common share:

        

Net income attributable to Amedisys, Inc. common stockholders

   $ 0.13     $ 0.32     $ 0.58     $ 0.51  

Weighted average shares outstanding

     33,637       33,197       33,540       33,059  

Diluted earnings per common share:

 

Net income attributable to Amedisys, Inc. common stockholders

   $ 0.13     $ 0.32     $ 0.57     $ 0.50  

Weighted average shares outstanding

     34,329       33,708       34,203       33,641  

 

4


AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(Amounts in thousands, except share data)

 

     June 30, 2017     December 31, 2016  
     (Unaudited)        
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 59,164     $ 30,197  

Patient accounts receivable, net of allowance for doubtful accounts of $17,865 and $17,716

     173,388       166,056  

Prepaid expenses

     8,800       7,397  

Other current assets

     31,789       11,260  
  

 

 

   

 

 

 

Total current assets

     273,141       214,910  

Property and equipment, net of accumulated depreciation of $144,708 and $138,650

     34,420       36,999  

Goodwill

     313,663       288,957  

Intangible assets, net of accumulated amortization of $29,254 and $27,864

     45,523       46,755  

Deferred income taxes

     100,806       107,940  

Other assets, net

     38,320       38,468  
  

 

 

   

 

 

 

Total assets

   $ 805,873     $ 734,029  
  

 

 

   

 

 

 
LIABILITIES AND EQUITY     

Current liabilities:

    

Accounts payable

   $ 29,119     $ 30,358  

Payroll and employee benefits

     81,331       82,480  

Accrued charge related to Securities Class Action Lawsuit settlement

     43,750       —    

Accrued expenses

     62,981       63,290  

Current portion of long-term obligations

     8,137       5,220  
  

 

 

   

 

 

 

Total current liabilities

     225,318       181,348  

Long-term obligations, less current portion

     83,157       87,809  

Other long-term obligations

     4,337       3,730  
  

 

 

   

 

 

 

Total liabilities

     312,812       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; 35,609,934 and 35,253,577 shares issued; and 33,850,633 and 33,597,215 shares outstanding

     36       35  

Additional paid-in capital

     555,029       537,472  

Treasury stock at cost, 1,759,301 and 1,656,362 shares of common stock

     (52,500     (46,774

Accumulated other comprehensive income

     15       15  

Retained deficit

     (10,505     (30,545
  

 

 

   

 

 

 

Total Amedisys, Inc. stockholders’ equity

     492,075       460,203  

Noncontrolling interests

     986       939  
  

 

 

   

 

 

 

Total equity

     493,061       461,142  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 805,873     $ 734,029  
  

 

 

   

 

 

 

 

5


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
June 30,
    For the Six Month Period Ended June 30,  
     2017     2016     2017     2016  

Cash Flows from Operating Activities:

        

Net income

   $ 4,529     $ 10,843     $ 19,728     $ 17,158  

Adjustments to reconcile net income to net cash provided by operating activities:

        

Depreciation and amortization

     4,537       4,975       8,954       9,448  

Provision for doubtful accounts

     4,651       4,253       10,992       8,193  

Non-cash compensation

     4,356       3,736       8,230       7,806  

401(k) employer match

     2,140       1,703       4,367       3,440  

Loss on disposal of property and equipment

     163       162       147       522  

Deferred income taxes

     (1,863     7,324       7,582       11,362  

Equity in earnings from equity method investments

     (2,355     (363     (2,249     (358

Amortization of deferred debt issuance costs

     185       185       370       370  

Return on equity investment

     3,266       —         3,416       362  

Changes in operating assets and liabilities, net of impact of acquisitions:

        

Patient accounts receivable

     (5,332     (2,660     (17,825     (30,349

Other current assets

     (3,489     (2,294     (6,892     5,551  

Other assets

     (158     (9,168     (1,148     (11,943

Accounts payable

     1,000       (490     1,093       8,608  

Securities Class Action Lawsuit settlement accrual, net

     28,712       —         28,712       —    

Accrued expenses

     (4,129     (3,612     (2,743     (2,811

Other long-term obligations

     31       57       607       (464
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     36,244       14,651       63,341       26,895  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flows from Investing Activities:

        

Proceeds from sale of deferred compensation plan assets

     —         —         565       230  

Purchase of investment

     (180     (432     (436     (432

Purchases of property and equipment

     (3,064     (3,213     (7,449     (9,915

Acquisitions of businesses, net of cash acquired

     (20,029     48       (24,128     (27,634
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (23,273     (3,597     (31,448     (37,751
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flows from Financing Activities:

        

Proceeds from issuance of stock upon exercise of stock options and warrants

     3,550       —         4,203       —    

Proceeds from issuance of stock to employee stock purchase plan

     575       569       1,187       1,207  

Shares withheld upon stock vesting

     (4,968     —         (5,726     —    

Tax benefit from stock options exercised and restricted stock vesting

     —         6,971       —         7,130  

Non-controlling interest distribution

     (48     (200     (90     (200

Proceeds from revolving line of credit

     —         43,500       —         84,000  

Repayments of revolving line of credit

     —         (58,500     —         (84,000

Principal payments of long-term obligations

     (1,250     (1,250     (2,500     (2,500

Purchase of company stock

     —         —         —         (12,315
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

     (2,141     (8,910     (2,926     (6,678
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     10,830       2,144       28,967       (17,534

Cash and cash equivalents at beginning of period

     48,334       7,824       30,197       27,502  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 59,164     $ 9,968     $ 59,164     $ 9,968  
  

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Disclosures of Cash Flow Information:

        

Cash paid for interest

   $ 466     $ 711     $ 1,172     $ 1,359  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash paid for income taxes, net of refunds received

   $ —       $ 832     $ 284     $ 825  
  

 

 

   

 

 

   

 

 

   

 

 

 

Days revenue outstanding, net (1)

     40.2       37.2       40.2       37.2  

 

(1) Our calculation of days revenue outstanding, net at June 30, 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 periods ended June 30, 2017 and 2016, respectively.

 

6


AMEDISYS, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Amounts in millions, except statistical information)

(Unaudited)

Segment Information - Home Health

 

     For the Three Month Period Ended June 30,  
     2017     2016  

Financial Information (in millions):

    

Medicare

   $ 198.3     $ 208.4  

Non-Medicare

     75.4       67.1  
  

 

 

   

 

 

 

Net service revenue

     273.7       275.5  

Cost of service

     164.8       160.3  
  

 

 

   

 

 

 

Gross margin

     108.9       115.2  

Other operating expenses

     73.3       77.4  
  

 

 

   

 

 

 

Operating income

   $ 35.6     $ 37.8  
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     (5 %)      4

Non-Medicare revenue

     12     13

Medicare admissions

     (4 %)      4

Total Episodic admissions

     (1 %)      5

Total admissions

     —       3

Key Statistical Data - Total (2):

    

Medicare:

    

Admissions

     47,260       48,982  

Recertifications

     26,839       26,020  

Completed episodes

     73,872       74,027  

Visits

     1,271,747       1,315,417  

Average revenue per completed episode (3)

   $ 2,829     $ 2,850  

Visits per completed episode (4)

     17.5       17.7  

Non-Medicare:

    

Admissions

     26,225       24,237  

Recertifications

     11,462       9,640  

Visits

     579,328       515,062  

Visiting Clinician Cost per Visit

   $ 80.61     $ 79.44  

Clinical Manager Cost per Visit

   $ 8.44     $ 8.12  
  

 

 

   

 

 

 

Total Cost per Visit

   $ 89.05     $ 87.56  
  

 

 

   

 

 

 

Visits

     1,851,075       1,830,479  

 

7


     For the Six Month Period Ended June 30,  
     2017     2016  

Financial Information (in millions):

    

Medicare

   $ 397.0     $ 415.2  

Non-Medicare

     148.0       133.0  
  

 

 

   

 

 

 

Net service revenue

     545.0       548.2  

Cost of service

     327.8       321.1  
  

 

 

   

 

 

 

Gross margin

     217.2       227.1  

Other operating expenses

     145.9       153.1  
  

 

 

   

 

 

 

Operating income

   $ 71.3     $ 74.0  
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     (4 %)      4

Non-Medicare revenue

     12     17

Medicare admissions

     (2 %)      4

Total Episodic admissions

     1     5

Total admissions

     1     5

Key Statistical Data - Total (2):

    

Medicare:

    

Admissions

     96,888       99,400  

Recertifications

     51,882       52,043  

Completed episodes

     145,736       146,059  

Visits

     2,534,845       2,626,788  

Average revenue per completed episode (3)

   $ 2,750     $ 2,831  

Visits per completed episode (4)

     17.2       17.6  

Non-Medicare:

    

Admissions

     53,558       49,804  

Recertifications

     21,686       19,466  

Visits

     1,134,876       1,043,031  

Visiting Clinician Cost per Visit

   $ 80.84     $ 79.29  

Clinical Manager Cost per Visit

   $ 8.49     $ 8.22  
  

 

 

   

 

 

 

Total Cost per Visit

   $ 89.33     $ 87.51  
  

 

 

   

 

 

 

Visits

     3,669,721       3,669,819  

 

(1) Same store information represents the percent increase (decrease) in our Medicare and Non-Medicare revenue or admissions for the period as a percent of the Medicare and Non-Medicare revenue or admissions 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.

 

8


Segment Information - Hospice

 

     For the Three Month Period Ended June 30,  
     2017     2016  

Financial Information (in millions):

    

Medicare

   $ 85.8     $ 71.3  

Non-Medicare

     4.9       4.5  
  

 

 

   

 

 

 

Net service revenue

     90.7       75.8  

Cost of service

     44.7       39.4  
  

 

 

   

 

 

 

Gross margin

     46.0       36.4  

Other operating expenses

     20.4       18.4  
  

 

 

   

 

 

 

Operating income

   $ 25.6     $ 18.0  
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     19     14

Non-Medicare revenue

     8     15

Hospice admissions

     11     18

Average daily census

     16     16

Key Statistical Data - Total (2):

    

Hospice admissions

     6,248       5,576  

Average daily census

     6,717       5,730  

Revenue per day, net

   $ 148.39     $ 145.40  

Cost of service per day

   $ 73.08     $ 75.69  

Average discharge length of stay

     89     94  
     For the Six Month Period Ended June 30,  
     2017     2016  

Financial Information (in millions):

    

Medicare

   $ 166.5     $ 140.0  

Non-Medicare

     9.8       8.8  
  

 

 

   

 

 

 

Net service revenue

     176.3       148.8  

Cost of service

     87.1       78.2  
  

 

 

   

 

 

 

Gross margin

     89.2       70.6  

Other operating expenses

     41.2       36.3  
  

 

 

   

 

 

 

Operating income

   $ 48.0     $ 34.3  
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     18     18

Non-Medicare revenue

     11     15

Hospice admissions

     15     19

Average daily census

     16     19

Key Statistical Data - Total (2):

    

Hospice admissions

     12,753       11,006  

Average daily census

     6,542       5,618  

Revenue per day, net

   $ 148.88     $ 145.52  

Cost of service per day

   $ 73.56     $ 76.51  

Average discharge length of stay

     90       95  

 

(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.

 

9


Segment Information - Personal Care

 

     For the Three Month Period Ended June 30,  
     2017      2016  

Financial Information (in millions):

     

Medicare

   $ —        $ —    

Non-Medicare

     14.4        9.4  
  

 

 

    

 

 

 

Net service revenue

     14.4        9.4  

Cost of service

     10.3        6.8  
  

 

 

    

 

 

 

Gross margin

     4.1        2.6  

Other operating expenses

     3.1        2.3  
  

 

 

    

 

 

 

Operating income

   $ 1.0      $ 0.3  
  

 

 

    

 

 

 

Key Statistical Data:

     

Billable hours

     618,401        404,374  

Clients served

     8,470        5,940  
     For the Six Month Period Ended June 30,  
     2017      2016  

Financial Information (in millions):

     

Medicare

   $ —        $ —    

Non-Medicare

     28.0        12.5  
  

 

 

    

 

 

 

Net service revenue

     28.0        12.5  

Cost of service

     20.7        9.0  
  

 

 

    

 

 

 

Gross margin

     7.3        3.5  

Other operating expenses

     6.5        2.7  
  

 

 

    

 

 

 

Operating income

   $ 0.8      $ 0.8  
  

 

 

    

 

 

 

Key Statistical Data:

     

Billable hours

     1,206,618        542,257  

Clients served

     10,169        6,866  

 

10


Segment Information - Corporate

 

     For the Three Month Period Ended June 30,  
     2017      2016  

Financial Information (in millions):

     

Other operating expenses

   $ 30.0      $ 34.7  

Depreciation and amortization

     3.3        3.1  
  

 

 

    

 

 

 

Total operating expenses before Securities Class Action Lawsuit settlement, net

     33.3        37.8  

Securities Class Action Lawsuit settlement, net

     28.7        —    
  

 

 

    

 

 

 

Total operating expenses

   $ 62.0      $ 37.8  
  

 

 

    

 

 

 
     For the Six Month Period Ended June 30,  
     2017      2016  

Financial Information (in millions):

     

Other operating expenses

   $ 59.5      $ 73.7  

Depreciation and amortization

     6.5        6.0  
  

 

 

    

 

 

 

Total operating expenses before Securities Class Action Lawsuit settlement, net

     66.0        79.7  

Securities Class Action Lawsuit settlement, net

     28.7        —    
  

 

 

    

 

 

 

Total operating expenses

   $ 94.7      $ 79.7  
  

 

 

    

 

 

 

 

11


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 June 30,
     For the Six Month Period
Ended June 30,
 
     2017     2016      2017      2016  

Net income attributable to Amedisys, Inc.

   $ 4,461     $ 10,696      $ 19,591      $ 16,909  

Add:

          

Income tax (benefit) expense

     (1,963     7,242        7,960        11,630  

Interest expense, net

     1,156       1,294        2,205        2,384  

Depreciation and amortization

     4,537       4,975        8,954        9,448  

Certain items (1)

     27,958       5,636        29,424        13,402  
  

 

 

   

 

 

    

 

 

    

 

 

 

Adjusted EBITDA (2) (6)

   $ 36,149     $ 29,843      $ 68,134      $ 53,773  
  

 

 

   

 

 

    

 

 

    

 

 

 
Adjusted Net Service Revenue Reconciliation:                           
     For the Three Month Period
Ended June 30,
     For the Six Month Period
Ended June 30,
 
     2017     2016      2017      2016  

Net service revenue

   $ 378,821     $ 360,746      $ 749,279      $ 709,563  

Add:

          

Certain items (1)

     —         948        —          948  
  

 

 

   

 

 

    

 

 

    

 

 

 

Adjusted net service revenue (3) (6)

   $ 378,821     $ 361,694      $ 749,279      $ 710,511  
  

 

 

   

 

 

    

 

 

    

 

 

 
Adjusted Net Income Attributable to Amedisys, Inc. Reconciliation:                           
     For the Three Month Period
Ended June 30,
     For the Six Month Period
Ended June 30,
 
     2017     2016      2017      2016  

Net income attributable to Amedisys, Inc.

   $ 4,461     $ 10,696      $ 19,591      $ 16,909  

Add:

          

Certain items (1)

     16,915       3,410        17,802        8,108  
  

 

 

   

 

 

    

 

 

    

 

 

 

Adjusted net income attributable to Amedisys, Inc. (4) (6)

   $ 21,376     $ 14,106      $ 37,393      $ 25,017  
  

 

 

   

 

 

    

 

 

    

 

 

 
Adjusted Net Income Attributable to Amedisys, Inc. per Diluted Share:                           
     For the Three Month Period
Ended June 30,
     For the Six Month Period
Ended June 30,
 
     2017     2016      2017      2016  

Net income attributable to Amedisys, Inc. common stockholders per diluted share

   $ 0.13     $ 0.32      $ 0.57      $ 0.50  

Add:

          

Certain items (1)

     0.49       0.10        0.52        0.24  
  

 

 

   

 

 

    

 

 

    

 

 

 

Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (5) (6)

   $ 0.62     $ 0.42      $ 1.09      $ 0.74  
  

 

 

   

 

 

    

 

 

    

 

 

 

 

12


(1) The following details the certain items for the three and six month periods ended June 30, 2017 and 2016:

Certain Items:

 

     For the Three Month Period
Ended June 30, 2017
    For the Six Month Period
Ended June 30, 2017
 
     (Income) Expense     (Income) Expense  

Certain Items Impacting Operating Expenses:

    

Acquisition costs

     294       976  

Legal fees - non-routine

     1,111       1,234  

Securities Class Action Lawsuit settlement accrual, net

     28,712       28,712  

Data center relocation

     226       940  

Certain Items Impacting Total Other Income (Expense):

    

Legal settlements

     (693     (1,367

Miscellaneous, other (income) expense, net

     (1,692     (1,071
  

 

 

   

 

 

 

Total

   $ 27,958     $ 29,424  
  

 

 

   

 

 

 

Net of tax

   $ 16,915     $ 17,802  
  

 

 

   

 

 

 

Diluted EPS

   $ 0.49     $ 0.52  
  

 

 

   

 

 

 
     For the Three Month Period
Ended June 30, 2016
    For the Six Month Period
Ended June 30, 2016
 
     (Income) Expense     (Income) Expense  

Certain Items Impacting Net Service Revenue:

    

Third party audit reserve

   $ 948     $ 948  

Certain Items Impacting Operating Expenses:

    

HCHB implementation

     2,593       5,033  

Acquisition costs

     337       2,042  

Legal fees - non-routine

     459       1,976  

Restructuring activity

     1,485       3,247  

Data center relocation

     9       456  

Certain Items Impacting Total Other Income (Expense):

    

Legal settlements

     (265     (806

Miscellaneous, other (income) expense, net

     70       506  
  

 

 

   

 

 

 

Total

   $ 5,636     $ 13,402  
  

 

 

   

 

 

 

Net of tax

   $ 3,410     $ 8,108  
  

 

 

   

 

 

 

Diluted EPS

   $ 0.10     $ 0.24  
  

 

 

   

 

 

 

 

(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 service revenue is defined as net service revenue plus certain items as described in footnote 1.
(4) 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.
(5) 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.
(6) Adjusted EBITDA, adjusted net service revenue, 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.

 

13