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Exhibit 99.1

 

LOGO

AMEDISYS REPORTS THIRD QUARTER 2017 FINANCIAL RESULTS

BATON ROUGE, Louisiana (November 7, 2017) — Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three and nine-month periods ended September 30, 2017.

Three Month Periods Ended September 30, 2017 and 2016

 

    Net service revenue increased $18.6 million to $380.2 million compared to $361.6 million in 2016.

 

    Net income attributable to Amedisys, Inc. of $14.6 million compared to $11.4 million in 2016.

 

    Net income attributable to Amedisys, Inc. per diluted share of $0.42 compared to $0.34 in 2016.

Adjusted Quarterly Results*

 

    Adjusted EBITDA of $36.9 million compared to $25.6 million in 2016.

 

    Adjusted net service revenue of $386.7 million compared to $361.6 million in 2016.

 

    Adjusted net income attributable to Amedisys, Inc. of $19.2 million compared to $12.1 million in 2016.

 

    Adjusted net income attributable to Amedisys, Inc. per diluted share of $0.56 compared to $0.36 in 2016.

Nine Month Periods Ended September 30, 2017 and 2016

 

    Net service revenue increased $58.3 million to $1,129.4 million compared to $1,071.1 million in 2016.

 

    Net income attributable to Amedisys, Inc. of $34.1 million compared to $28.3 million in 2016.

 

    Net income attributable to Amedisys, Inc. per diluted share of $1.00 compared to $0.84 in 2016.

Adjusted Year to Date Results*

 

    Adjusted EBITDA of $105.0 million compared to $79.4 million in 2016.

 

    Adjusted net service revenue of $1,135.9 million compared to $1,072.1 million in 2016.

 

    Adjusted net income attributable to Amedisys, Inc. of $56.5 million compared to $37.2 million in 2016.

 

    Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.65 compared to $1.10 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, “I am proud of our third quarter results and the strong execution of our team. We are pleased with the growth trends we are seeing in home health, after experiencing some obstacles in the last few quarters. Our strategies around home health business development hiring, retention and training are delivering the desired results, and now we must continue that momentum. Our hospice segment continues its stellar performance, with 18% revenue growth compared to the third quarter of 2016. Our personal care segment has built out an impressive platform for growth in under two years and has integrated tuck-in acquisitions to fill out its footprint in Massachusetts. Most importantly, our clinical and outcomes metrics continue to improve as we pursue the goal of clinical distinction for our patients, referral sources and payors. On the regulatory side, we are pleased with the CMS decision not to finalize the home health groupings model. While we are supportive of payment reform in home health, we must ensure that any reform is designed such that patient access to home health services is not negatively impacted. Finally, thanks to our team of over 17,000 employees for continuing to provide excellent care to 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 Wednesday, November 8, 2017, at 11:00 a.m. ET to discuss its third 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 December 8, 2017 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13672018.

 

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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 more than 17,000 employees, in 425 care centers in 34 states and the District of Columbia, 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 September 30,
    For the Nine Month Period
Ended September 30,
 
     2017     2016     2017     2016  

Net service revenue

   $ 380,163     $ 361,595     $ 1,129,442     $ 1,071,158  

Cost of service, excluding depreciation and amortization

     226,642       212,124       662,192       620,466  

General and administrative expenses:

        

Salaries and benefits

     77,130       77,019       226,532       231,079  

Non-cash compensation

     3,558       4,750       11,788       12,556  

Other

     38,189       42,658       120,223       134,951  

Provision for doubtful accounts

     7,086       5,471       18,078       13,664  

Depreciation and amortization

     4,185       5,214       13,139       14,662  

Securities Class Action Lawsuit settlement, net

     —         —         28,712       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

     356,790       347,236       1,080,664       1,027,378  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     23,373       14,359       48,778       43,780  

Other income (expense):

        

Interest income

     44     14     104     45

Interest expense

     (1,335     (1,136     (3,600     (3,551

Equity in earnings from equity method investments

     900     3,244       3,149       3,602  

Miscellaneous, net

     1,043       1,713       3,282       3,106  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income, net

     652     3,835       2,935       3,202  

Income before income taxes

     24,025       18,194       51,713       46,982  

Income tax expense

     (9,364     (6,693     (17,324     (18,323
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     14,661       11,501       34,389       28,659  

Net income attributable to noncontrolling interests

     (103     (66     (240     (315
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Amedisys, Inc.

   $ 14,558     $ 11,435     $ 34,149     $ 28,344  
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per common share:

 

Net income attributable to Amedisys, Inc. common stockholders

   $ 0.43     $ 0.34     $ 1.02     $ 0.86  

Weighted average shares outstanding

     33,838       33,309       33,640       33,142  

Diluted earnings per common share:

 

Net income attributable to Amedisys, Inc. common stockholders

   $ 0.42     $ 0.34     $ 1.00     $ 0.84  

Weighted average shares outstanding

     34,363       33,823       34,255       33,699  

 

4


AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(Amounts in thousands, except share data)

 

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

Current assets:

    

Cash and cash equivalents

   $ 66,114     $ 30,197  

Patient accounts receivable, net of allowance for doubtful accounts of $19,933 and $17,716

     177,402       166,056  

Prepaid expenses

     9,770       7,397  

Other current assets

     14,904       11,260  
  

 

 

   

 

 

 

Total current assets

     268,190       214,910  

Property and equipment, net of accumulated depreciation of $148,301 and $138,650

     32,695       36,999  

Goodwill

     313,663       288,957  

Intangible assets, net of accumulated amortization of $29,932 and $27,864

     44,845       46,755  

Deferred income taxes

     91,160       107,940  

Other assets, net

     48,976       38,468  
  

 

 

   

 

 

 

Total assets

   $ 799,529     $ 734,029  
  

 

 

   

 

 

 
LIABILITIES AND EQUITY     

Current liabilities:

    

Accounts payable

   $ 22,815     $ 30,358  

Payroll and employee benefits

     86,139       82,480  

Accrued expenses

     83,516       63,290  

Current portion of long-term obligations

     9,387       5,220  
  

 

 

   

 

 

 

Total current liabilities

     201,857       181,348  

Long-term obligations, less current portion

     80,523       87,809  

Other long-term obligations

     3,930       3,730  
  

 

 

   

 

 

 

Total liabilities

     286,310       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; 35,687,068 and 35,253,577 shares issued; and 33,913,558 and 33,597,215 shares outstanding

     36     35

Additional paid-in capital

     561,380       537,472  

Treasury stock at cost, 1,773,510 and 1,656,362 shares of common stock

     (53,228     (46,774

Accumulated other comprehensive income

     15     15

Retained earnings (deficit)

     4,053       (30,545
  

 

 

   

 

 

 

Total Amedisys, Inc. stockholders’ equity

     512,256       460,203  

Noncontrolling interests

     963     939
  

 

 

   

 

 

 

Total equity

     513,219       461,142  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 799,529     $ 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 September 30,
    For the Nine Month Period
Ended September 30,
 
     2017     2016     2017     2016  

Cash Flows from Operating Activities:

        

Net income

   $ 14,661     $ 11,501     $ 34,389     $ 28,659  

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

        

Depreciation and amortization

     4,185       5,214       13,139       14,662  

Provision for doubtful accounts

     7,086       5,471       18,078       13,664  

Non-cash compensation

     3,558       4,750       11,788       12,556  

401(k) employer match

     2,180       1,694       6,547       5,134  

(Gain) loss on disposal of property and equipment

     (169     34     (22     556

Deferred income taxes

     9,646       7,327       17,228       18,689  

Equity in earnings from equity method investments

     (900     (3,244     (3,149     (3,602

Amortization of deferred debt issuance costs

     185     185     555     555

Return on equity investment

     1,240       1,551       4,656       1,913  

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

        

Patient accounts receivable

     (11,099     (15,758     (28,924     (46,107

Other current assets

     996     (4,681     (5,896     870

Other assets

     (11,054     34     (12,202     (11,909

Accounts payable

     (6,523     (1,300     (5,430     7,308  

Securities Class Action Lawsuit settlement accrual, net

     (28,712     —         —         —    

Accrued expenses

     25,327       (6,289     22,584       (9,100

Other long-term obligations

     (406     314     201     (150
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     10,201       6,803       73,542       33,698  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flows from Investing Activities:

        

Proceeds from sale of deferred compensation plan assets

     57     —         622     230

Purchase of investment

     —         (318     (436     (750

Purchases of property and equipment

     (1,625     (3,587     (9,074     (13,502

Proceeds from sale of property and equipment

     118     —         118     —    

Acquisitions of businesses, net of cash acquired

     —         (3,744     (24,128     (31,378
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (1,450     (7,649     (32,898     (45,400
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flows from Financing Activities:

        

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

     11     —         4,214       —    

Proceeds from issuance of stock to employee stock purchase plan

     611     611     1,798       1,818  

Shares withheld upon stock vesting

     (728     —         (6,454     —    

Tax benefit from stock options exercised and restricted stock vesting

     —         111     —         7,241  

Non-controlling interest distribution

     (126     (84     (216     (284

Sale of non-controlling interest

     —         405     —         405

Proceeds from revolving line of credit

     —         44,500       —         128,500  

Repayments of revolving line of credit

     —         (44,500     —         (128,500

Principal payments of long-term obligations

     (1,569     (1,250     (4,069     (3,750

Purchase of company stock

     —         —         —         (12,315
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

     (1,801     (207     (4,727     (6,885
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     6,950       (1,053     35,917       (18,587

Cash and cash equivalents at beginning of period

     59,164       9,968       30,197       27,502  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 66,114     $ 8,915     $ 66,114     $ 8,915  
  

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Disclosures of Cash Flow Information:

        

Cash paid for interest

   $ 1,016     $ 917     $ 2,188     $ 2,276  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash paid for income taxes, net of refunds received

   $ 31     $ (67   $ 315     $ 758  
  

 

 

   

 

 

   

 

 

   

 

 

 

Days revenue outstanding, net (1)

     40.7       40.0       40.7       40.0  

 

(1) Our calculation of days revenue outstanding, net at September 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 September 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 September 30,  
     2017     2016  

Financial Information (in millions):

    

Medicare

   $ 191.4     $ 203.9  

Non-Medicare

     78.1       65.0  
  

 

 

   

 

 

 

Net service revenue

     269.5       268.9  

Cost of service

     168.2       162.4  
  

 

 

   

 

 

 

Gross margin

     101.3       106.5  

Other operating expenses

     77.2       77.4  
  

 

 

   

 

 

 

Operating income

   $ 24.1     $ 29.1  
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     (7 %)      1

Non-Medicare revenue

     19     4

Medicare admissions

     (3 %)      1

Total Episodic admissions

     1     3

Total admissions

     1     —  

Key Statistical Data - Total (2):

    

Medicare:

    

Admissions

     46,823       47,625  

Recertifications

     26,996       25,522  
  

 

 

   

 

 

 

Total volume

     73,819       73,147  

Completed episodes

     71,454       71,948  

Visits

     1,259,156       1,266,780  

Average revenue per completed episode (3)

   $ 2,820     $ 2,841  

Visits per completed episode (4)

     17.4       17.5  

Non-Medicare:

    

Admissions

     26,686       24,335  

Recertifications

     12,263       9,479  

Visits

     592,742       506,729  

Visiting Clinician Cost per Visit

   $ 82.53     $ 82.86  

Clinical Manager Cost per Visit

   $ 8.30     $ 8.72  
  

 

 

   

 

 

 

Total Cost per Visit

   $ 90.83     $ 91.58  
  

 

 

   

 

 

 

Visits

     1,851,898       1,773,509  

 

7


     For the Nine Month Period Ended September 30,  
     2017     2016  

Financial Information (in millions):

    

Medicare

   $ 588.4     $ 619.2  

Non-Medicare

     226.1       198.0  
  

 

 

   

 

 

 

Net service revenue

     814.5       817.2  

Cost of service

     496.1       483.6  
  

 

 

   

 

 

 

Gross margin

     318.4       333.6  

Other operating expenses

     223.0       230.5  
  

 

 

   

 

 

 

Operating income

   $ 95.4     $ 103.1  
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     (5 %)      3

Non-Medicare revenue

     14     12

Medicare admissions

     (3 %)      3

Total Episodic admissions

     1     4

Total admissions

     1     3

Key Statistical Data - Total (2):

    

Medicare:

    

Admissions

     143,711       147,025  

Recertifications

     78,878       77,565  
  

 

 

   

 

 

 

Total volume

     222,589       224,590  

Completed episodes

     217,190       218,007  

Visits

     3,794,001       3,893,568  

Average revenue per completed episode (3)

   $ 2,811     $ 2,835  

Visits per completed episode (4)

     17.3       17.5  

Non-Medicare:

    

Admissions

     80,244       74,139  

Recertifications

     33,949       28,945  

Visits

     1,727,618       1,549,760  

Visiting Clinician Cost per Visit

   $ 81.41     $ 80.52  

Clinical Manager Cost per Visit

   $ 8.42     $ 8.31  
  

 

 

   

 

 

 

Total Cost per Visit

   $ 89.83     $ 88.83  
  

 

 

   

 

 

 

Visits

     5,521,619       5,443,328  

 

(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 September 30,  
     2017     2016  

Financial Information (in millions):

    

Medicare

   $ 91.4     $ 77.0  

Non-Medicare

     5.1       5.0  
  

 

 

   

 

 

 

Net service revenue

     96.5       82.0  

Cost of service

     47.8       41.9  
  

 

 

   

 

 

 

Gross margin

     48.7       40.1  

Other operating expenses

     20.4       19.3  
  

 

 

   

 

 

 

Operating income

   $ 28.3     $ 20.8  
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     17     12

Non-Medicare revenue

     (2 %)      14

Hospice admissions

     7     16

Average daily census

     14     14

Key Statistical Data - Total (2):

    

Hospice admissions

     6,257       5,751  

Average daily census

     7,026       6,087  

Revenue per day, net

   $ 149.25     $ 146.49  

Cost of service per day

   $ 73.99     $ 74.77  

Average discharge length of stay

     95     92
     For the Nine Month Period Ended September 30,  
     2017     2016  

Financial Information (in millions):

    

Medicare

   $ 257.9     $ 217.0  

Non-Medicare

     14.9       13.8  
  

 

 

   

 

 

 

Net service revenue

     272.8       230.8  

Cost of service

     134.9       120.1  
  

 

 

   

 

 

 

Gross margin

     137.9       110.7  

Other operating expenses

     61.7       55.6  
  

 

 

   

 

 

 

Operating income

   $ 76.2     $ 55.1  
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     18     16

Non-Medicare revenue

     7     15

Hospice admissions

     13     18

Average daily census

     15     17

Key Statistical Data -Total (2):

    

Hospice admissions

     19,010       16,757  

Average daily census

     6,705       5,776  

Revenue per day, net

   $ 149.01     $ 145.86  

Cost of service per day

   $ 73.72     $ 75.89  

Average discharge length of stay

     92     94

 

(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 September 30,  
     2017      2016  

Financial Information (in millions):

     

Medicare

   $ —        $ —    

Non-Medicare

     14.2        10.7  
  

 

 

    

 

 

 

Net service revenue

     14.2        10.7  

Cost of service

     10.6        7.8  
  

 

 

    

 

 

 

Gross margin

     3.6        2.9  

Other operating expenses

     3.6        2.4  
  

 

 

    

 

 

 

Operating income

   $ —        $ 0.5  
  

 

 

    

 

 

 

Key Statistical Data:

     

Billable hours

     616,036        448,133  

Clients served

     8,145        7,132  

Shifts

     281,904        203,465  

Revenue per hour

   $ 23.00      $ 23.70  

Revenue per shift

   $ 50.26      $ 52.19  

Hours per shift

     2.2      2.2  
     For the Nine Month Period Ended September 30,  
     2017      2016  

Financial Information (in millions):

     

Medicare

   $ —        $ —    

Non-Medicare

     42.1        23.2  
  

 

 

    

 

 

 

Net service revenue

     42.1        23.2  

Cost of service

     31.2        16.8  
  

 

 

    

 

 

 

Gross margin

     10.9        6.4  

Other operating expenses

     10.0        5.1  
  

 

 

    

 

 

 

Operating income

   $ 0.9      $ 1.3  
  

 

 

    

 

 

 

Key Statistical Data:

     

Billable hours

     1,822,653        990,389  

Clients served

     11,372        8,969  

Shifts

     830,151        451,421  

Revenue per hour

   $ 23.13      $ 23.41  

Revenue per shift

   $ 50.77      $ 51.36  

Hours per shift

     2.2        2.2  

 

10


Segment Information - Corporate

 

    For the Three Month Period Ended September 30,  
    2017     2016  

Financial Information (in millions):

   

Other operating expenses

  $ 25.9     $ 32.7  

Depreciation and amortization

    3.1       3.3  
 

 

 

   

 

 

 

Total operating expenses

  $ 29.0     $ 36.0  
 

 

 

   

 

 

 
    For the Nine Month Period Ended September 30,  
    2017     2016  

Financial Information (in millions):

   

Other operating expenses

  $ 85.4     $ 106.4  

Depreciation and amortization

    9.6       9.3  
 

 

 

   

 

 

 

Total operating expenses before Securities Class Action Lawsuit settlement, net

    95.0       115.7  

Securities Class Action Lawsuit settlement, net

    28.7       —    
 

 

 

   

 

 

 

Total operating expenses

  $ 123.7     $ 115.7  
 

 

 

   

 

 

 

 

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 September 30,
     For the Nine Month Period
Ended September 30,
 
     2017     2016      2017     2016  

Net income attributable to Amedisys, Inc.

   $ 14,558     $ 11,435      $ 34,149     $ 28,344  

Add:

         

Income tax expense

     9,364       6,693        17,324       18,323  

Interest expense, net

     1,291       1,122        3,496       3,506  

Depreciation and amortization

     4,185       5,214        13,139       14,662  

Certain items (1)

     7,590       1,158        37,014       14,560  

Interest component of certain items (1)

     (95     —          (95     —    
  

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted EBITDA (2) (6)

   $ 36,893     $ 25,622      $ 105,027     $ 79,395  
  

 

 

   

 

 

    

 

 

   

 

 

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

Net service revenue

   $ 380,163     $ 361,595      $ 1,129,442     $ 1,071,158  

Add:

         

Certain items (1)

     6,506       —          6,506       948
  

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted net service revenue (3) (6)

   $ 386,669     $ 361,595      $ 1,135,948     $ 1,072,106  
  

 

 

   

 

 

    

 

 

   

 

 

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

Net income attributable to Amedisys, Inc.

   $ 14,558     $ 11,435      $ 34,149     $ 28,344  

Add:

         

Certain items (1)

     4,592       700      22,394       8,809  
  

 

 

   

 

 

    

 

 

   

 

 

 

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

   $ 19,150     $ 12,135      $ 56,543     $ 37,153  
  

 

 

   

 

 

    

 

 

   

 

 

 

Adjusted Net Income Attributable to Amedisys, Inc. per Diluted Share:

 

    
     For the Three Month Period
Ended September 30,
     For the Nine Month Period
Ended September 30,
 
     2017     2016      2017     2016  

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

   $ 0.42     $ 0.34      $ 1.00     $ 0.84  

Add:

         

Certain items (1)

     0.13       0.02        0.65       0.26  
  

 

 

   

 

 

    

 

 

   

 

 

 

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

   $ 0.56     $ 0.36      $ 1.65     $ 1.10  
  

 

 

   

 

 

    

 

 

   

 

 

 

 

12


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

Certain Items:

 

    For the Three Month Period
Ended September 30, 2017
    For the Nine Month Period
Ended September 30, 2017
 
    (Income) Expense     (Income) Expense  

Certain Items Impacting Net Service Revenue:

   

Florida ZPIC audit

  $ 6,506     $ 6,506  

Certain Items Impacting Operating Expenses:

   

Acquisition costs

    —         976

Legal fees - non-routine

    176     1,410  

Securities Class Action Lawsuit settlement accrual, net

    —         28,712  

Restructuring activity

    1,670       1,670  

Data center relocation

    —         940

Certain Items Impacting Total Other Income (Expense):

   

Legal settlements

    (647     (2,014

Miscellaneous, other (income) expense, net

    (115     (1,186
 

 

 

   

 

 

 

Total

  $ 7,590     $ 37,014  
 

 

 

   

 

 

 

Net of tax

  $ 4,592     $ 22,394  
 

 

 

   

 

 

 

Diluted EPS

  $ 0.13     $ 0.65  
 

 

 

   

 

 

 

 

    For the Three Month Period
Ended September 30, 2016
    For the Nine Month Period
Ended September 30, 2016
 
    (Income) Expense     (Income) Expense  

Certain Items Impacting Net Service Revenue:

   

Third party audit reserve

  $ —       $ 948  

Certain Items Impacting Operating Expenses:

   

HCHB implementation

    1,993       7,025  

Acquisition costs

    467     2,509  

Legal fees - non-routine

    374     2,350  

Restructuring activity

    1,965       5,213  

Data center relocation

    —         456

Disaster relief

    338     338

Certain Items Impacting Total Other Income (Expense):

   

Legal settlements

    (1,242     (2,048

Miscellaneous, other (income) expense, net

    (2,737     (2,231
 

 

 

   

 

 

 

Total

  $ 1,158     $ 14,560  
 

 

 

   

 

 

 

Net of tax

  $ 700     $ 8,809  
 

 

 

   

 

 

 

Diluted EPS

  $ 0.02     $ 0.26  
 

 

 

   

 

 

 

 

(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