Amedisys, Inc. (NASDAQ: AMED) today reported its financial results
for the three month period and year ended December 31, 2018.
Three Month Periods Ended December 31, 2018 and 2017
- Net service revenue increased $36.4 million to
$434.4 million compared to $398.0 million in 2017
(1).
- Net income attributable to Amedisys, Inc. of $27.5 million
compared to net loss attributable to Amedisys, Inc. of $3.8 million
in 2017.
- Net income attributable to Amedisys, Inc. per diluted share of
$0.84 per diluted share compared to net loss attributable to
Amedisys, Inc. of $0.11 in 2017.
Adjusted Quarterly Results*
- Adjusted EBITDA of $43.9 million compared to
$37.1 million in 2017.
- Adjusted net service revenue of $434.4 million compared to
$398.0 million in 2017.
- Adjusted net income attributable to Amedisys, Inc. of
$29.8 million compared to $19.4 million in 2017.
- Adjusted net income attributable to Amedisys, Inc. per diluted
share of $0.91 compared to $0.56 in 2017.
Years Ended December 31, 2018 and 2017
- Net service revenue increased $151.3 million to
$1,662.6 million compared to $1,511.3 million in 2017
(1).
- Net income attributable to Amedisys, Inc. of
$119.3 million compared to $30.3 million in 2017.
- Net income attributable to Amedisys, Inc. per diluted share of
$3.55 per diluted share compared to $0.88 in 2017.
Adjusted Year End Results*
- Adjusted EBITDA of $180.6 million compared to
$142.2 million in 2017.
- Adjusted net service revenue of $1,664.3 million compared
to $1,517.8 million in 2017.
- Adjusted net income attributable to Amedisys, Inc. of
$122.1 million compared to $75.9 million in 2017.
- Adjusted net income attributable to Amedisys, Inc. per diluted
share of $3.63 compared to $2.21 in 2017.
* See pages 12 and 13 for the definition and
reconciliations of non-GAAP financial measures to GAAP measures.
(1) Subsequent to our adoption of Accounting Standards Updates
2014-09 and 2015-14 on January 1, 2018, using the full
retrospective method, amounts previously classified as provision
for doubtful accounts are now classified as price concessions in
determining the transaction price of our net service revenue.
Paul B. Kusserow, President and Chief Executive Officer stated,
“Our fourth quarter results are a fitting cap to what has been by
all accounts an incredible year for Amedisys. In 2018, we
treated approximately 400,000 patients making more than
10 million visits across our three lines of business while
continuing to execute and make excellent progress on our strategic
pillars of clinical distinction, becoming the employer of choice,
operational efficiency and growth. Providing our clinically
distinct care to as many patients wherever they call home is, and
will always be, our first priority and to that point, our home
health and hospice quality measures continue to be at or near the
top of the industry. After a year of rebuilding, our home
health segment returned to growth and exceeded margin
expectations. Hospice continued its stellar performance with
another strong quarter and year of ADC growth and we continued to
grow our personal care platform, completing two acquisitions during
the year. Finally, thanks to our team of over 21,000 employees
for continuing to do all that you do to drive such impressive
results and provide such incredible care.”
2019 Guidance
- Net service revenue is anticipated to be in the range of $1.94
billion to $1.98 billion.
- Adjusted EBITDA is anticipated to be in the range of $205
million to $210 million.
- Adjusted diluted earnings per share is anticipated to be in the
range of $3.98 to $4.09 based on an estimated 33.1 million shares
outstanding.
This guidance excludes the effects of any future acquisitions,
if any are made.
We urge caution in considering the current trends and 2019
guidance 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, 2018, 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,
February 28, 2019, at 10:00 a.m. ET to discuss its fourth
quarter and year end results. To participate on the conference
call, please call before 10:00 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 March 28, 2019 by dialing (877)
660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering
conference ID #13687280.
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 (loss) 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 (loss)
attributable to Amedisys, Inc. excluding certain items; and
(4) adjusted net income attributable to Amedisys, Inc. per
diluted share, defined as net income (loss) 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 3,000 hospitals and 65,000 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 21,000 employees, in 472 care centers within 38 states
and the District of Columbia, Amedisys is dedicated to delivering
the highest quality of care to the doorsteps of more than 376,000
patients and clients 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, 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 consistently provide high-quality care, 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, our ability to realize the anticipated benefits of the
acquisition of Compassionate Care Hospice, 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.
Contact: |
Investor Contact: |
Media Contact: |
|
Amedisys,
Inc. |
Amedisys,
Inc. |
|
Nick
Muscato |
Kendra
Kimmons |
|
Vice President,
Strategic Finance |
Vice President,
Marketing & Communications |
|
(855)
259-2046 |
(225)
299-3720 |
|
IR@amedisys.com |
kendra.kimmons@amedisys.com |
AMEDISYS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
|
For the Three-Month
Period Ended December 31 |
|
|
For the Year Ended
December 31 |
|
|
|
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
Net service revenue |
$ |
434,378 |
|
|
$ |
397,961 |
|
|
$ |
1,662,578 |
|
|
$ |
1,511,272 |
|
Cost of service, excluding
depreciation and amortization |
|
262,251 |
|
|
|
239,238 |
|
|
|
992,863 |
|
|
|
903,377 |
|
General and administrative
expenses: |
|
|
|
|
Salaries and
benefits |
|
84,309 |
|
|
|
79,406 |
|
|
|
316,522 |
|
|
|
305,938 |
|
Non-cash
compensation |
|
5,234 |
|
|
|
4,507 |
|
|
|
17,887 |
|
|
|
16,295 |
|
Other |
|
42,778 |
|
|
|
39,757 |
|
|
|
166,897 |
|
|
|
159,980 |
|
Depreciation and
amortization |
|
3,379 |
|
|
|
3,984 |
|
|
|
13,261 |
|
|
|
17,123 |
|
Asset impairment
charge |
|
— |
|
|
|
1,323 |
|
|
|
— |
|
|
|
1,323 |
|
Securities
Class Action Lawsuit settlement, net |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
28,712 |
|
Operating expenses |
|
397,951 |
|
|
|
368,215 |
|
|
|
1,507,430 |
|
|
|
1,432,748 |
|
Operating income |
|
36,427 |
|
|
|
29,746 |
|
|
|
155,148 |
|
|
|
78,524 |
|
Other income
(expense): |
|
|
|
|
Interest
income |
|
15 |
|
|
|
54 |
|
|
|
278 |
|
|
|
158 |
|
Interest
expense |
|
(1,536 |
) |
|
|
(1,431 |
) |
|
|
(7,370 |
) |
|
|
(5,031 |
) |
Equity in
earnings from equity method investments |
|
1,231 |
|
|
|
232 |
|
|
|
7,692 |
|
|
|
3,381 |
|
Miscellaneous, net |
|
458 |
|
|
|
487 |
|
|
|
3,240 |
|
|
|
3,769 |
|
Total other
income (expense), net |
|
168 |
|
|
|
(658 |
) |
|
|
3,840 |
|
|
|
2,277 |
|
Income before income
taxes |
|
36,595 |
|
|
|
29,088 |
|
|
|
158,988 |
|
|
|
80,801 |
|
Income tax expense |
|
(8,875 |
) |
|
|
(32,794 |
) |
|
|
(38,859 |
) |
|
|
(50,118 |
) |
Net income (loss) |
|
27,720 |
|
|
|
(3,706 |
) |
|
|
120,129 |
|
|
|
30,683 |
|
Net income attributable to
noncontrolling interests |
|
(259 |
) |
|
|
(142 |
) |
|
|
(783 |
) |
|
|
(382 |
) |
Net income (loss)
attributable to Amedisys, Inc. |
$ |
27,461 |
|
|
$ |
(3,848 |
) |
|
$ |
119,346 |
|
|
$ |
30,301 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common
share: |
|
|
|
|
Net income
(loss) attributable to Amedisys, Inc. common stockholders |
$ |
0.86 |
|
|
$ |
(0.11 |
) |
|
$ |
3.64 |
|
|
$ |
0.90 |
|
Weighted
average shares outstanding |
|
31,916 |
|
|
|
33,898 |
|
|
|
32,791 |
|
|
|
33,704 |
|
Diluted earnings per
common share: |
|
|
|
|
Net income
(loss) attributable to Amedisys, Inc. common stockholders |
$ |
0.84 |
|
|
$ |
(0.11 |
) |
|
$ |
3.55 |
|
|
$ |
0.88 |
|
Weighted
average shares outstanding |
|
32,805 |
|
|
|
33,898 |
|
|
|
33,609 |
|
|
|
34,304 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMEDISYS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Amounts in
thousands, except share data)
|
As of December 31, |
|
|
2018 |
|
|
|
2017 |
|
ASSETS |
|
|
Current assets: |
|
|
Cash and
cash equivalents |
$ |
20,229 |
|
|
$ |
86,363 |
|
Patient
accounts receivable |
|
188,972 |
|
|
|
201,196 |
|
Prepaid
expenses |
|
7,568 |
|
|
|
7,329 |
|
Other
current assets |
|
7,349 |
|
|
|
16,268 |
|
Total
current assets |
|
224,118 |
|
|
|
311,156 |
|
Property and equipment,
net of accumulated depreciation of $95,472 and $146,814 |
|
29,449 |
|
|
|
31,122 |
|
Goodwill |
|
329,480 |
|
|
|
319,949 |
|
Intangible assets, net of
accumulated amortization of $33,050 and $30,610 |
|
44,132 |
|
|
|
46,061 |
|
Deferred income taxes |
|
35,794 |
|
|
|
56,064 |
|
Other assets |
|
54,145 |
|
|
|
49,130 |
|
Total
assets |
$ |
717,118 |
|
|
$ |
813,482 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
Current liabilities: |
|
|
Accounts
payable |
$ |
28,531 |
|
|
$ |
25,384 |
|
Payroll and
employee benefits |
|
92,858 |
|
|
|
89,936 |
|
Accrued
expenses |
|
99,475 |
|
|
|
89,104 |
|
Current
portion of long-term obligations |
|
1,612 |
|
|
|
10,638 |
|
Total
current liabilities |
|
222,476 |
|
|
|
215,062 |
|
Long-term obligations,
less current portion |
|
5,775 |
|
|
|
78,203 |
|
Other long-term
obligations |
|
6,234 |
|
|
|
3,791 |
|
Total
liabilities |
|
234,485 |
|
|
|
297,056 |
|
|
|
|
|
|
|
|
|
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; 36,252,280
and 35,747,134 shares issued; and 31,973,505 and 33,964,767 shares
outstanding |
|
36 |
|
|
|
35 |
|
Additional
paid-in capital |
|
603,666 |
|
|
|
568,780 |
|
Treasury
stock at cost 4,278,775 and 1,782,367 shares of common stock |
|
(241,685 |
) |
|
|
(53,713 |
) |
Accumulated
other comprehensive income |
|
15 |
|
|
|
15 |
|
Retained
earnings |
|
119,550 |
|
|
|
204 |
|
Total
Amedisys, Inc. stockholders’ equity |
|
481,582 |
|
|
|
515,321 |
|
Noncontrolling interests |
|
1,051 |
|
|
|
1,105 |
|
Total
equity |
|
482,633 |
|
|
|
516,426 |
|
Total
liabilities and equity |
$ |
717,118 |
|
|
$ |
813,482 |
|
|
|
|
|
|
|
|
|
|
|
|
AMEDISYS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE
OUTSTANDING (Amounts in thousands, except
statistical information)
|
For the Three-Month
Period Ended December 31 |
|
|
For the Year
Ended December 31 |
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
Cash Flows from
Operating Activities: |
|
|
|
|
Net income (loss) |
$ |
27,720 |
|
|
$ |
(3,706 |
) |
|
$ |
120,129 |
|
|
$ |
30,683 |
|
Adjustments to reconcile
net income (loss) to net cash provided by operating
activities: |
|
|
|
|
Depreciation
and amortization |
|
3,379 |
|
|
|
3,984 |
|
|
|
13,261 |
|
|
|
17,123 |
|
Non-cash
compensation |
|
5,234 |
|
|
|
4,507 |
|
|
|
17,887 |
|
|
|
16,295 |
|
401(k)
employer match |
|
2,042 |
|
|
|
2,207 |
|
|
|
8,976 |
|
|
|
8,754 |
|
(Gain) loss
on disposal of property and equipment |
|
(24 |
) |
|
|
22 |
|
|
|
714 |
|
|
|
— |
|
Deferred
income taxes |
|
5,355 |
|
|
|
34,950 |
|
|
|
20,271 |
|
|
|
52,178 |
|
Equity in
earnings from equity method investments |
|
(1,231 |
) |
|
|
(232 |
) |
|
|
(7,692 |
) |
|
|
(3,381 |
) |
Amortization
of deferred debt issuance costs/debt discount |
|
201 |
|
|
|
180 |
|
|
|
797 |
|
|
|
735 |
|
Return on
equity investment |
|
1,785 |
|
|
|
665 |
|
|
|
6,158 |
|
|
|
5,321 |
|
Asset
impairment charge |
|
— |
|
|
|
1,323 |
|
|
|
— |
|
|
|
1,323 |
|
Changes in operating
assets and liabilities, net of impact of acquisitions: |
|
|
|
|
Patient
accounts receivable |
|
6,058 |
|
|
|
(23,826 |
) |
|
|
12,224 |
|
|
|
(34,672 |
) |
Other
current assets |
|
8,711 |
|
|
|
956 |
|
|
|
8,679 |
|
|
|
(4,940 |
) |
Other
assets |
|
2,221 |
|
|
|
(547 |
) |
|
|
2,947 |
|
|
|
(12,749 |
) |
Accounts
payable |
|
3,835 |
|
|
|
2,587 |
|
|
|
3,165 |
|
|
|
(2,843 |
) |
Accrued
expenses |
|
(1,234 |
) |
|
|
9,259 |
|
|
|
13,524 |
|
|
|
31,843 |
|
Other
long-term obligations |
|
(19 |
) |
|
|
(140 |
) |
|
|
2,443 |
|
|
|
61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities |
|
64,033 |
|
|
|
32,189 |
|
|
|
223,483 |
|
|
|
105,731 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Investing Activities: |
|
|
|
|
Proceeds from sale of
deferred compensation plan assets |
|
152 |
|
|
|
— |
|
|
|
715 |
|
|
|
622 |
|
Proceeds from the sale of
property and equipment |
|
3 |
|
|
|
131 |
|
|
|
54 |
|
|
|
249 |
|
Purchases of property and
equipment |
|
(874 |
) |
|
|
(1,633 |
) |
|
|
(6,558 |
) |
|
|
(10,707 |
) |
Investments in equity
method investees |
|
(3,667 |
) |
|
|
(40 |
) |
|
|
(7,144 |
) |
|
|
(476 |
) |
Acquisitions of
businesses, net of cash acquired |
|
(5,186 |
) |
|
|
(9,587 |
) |
|
|
(9,260 |
) |
|
|
(33,715 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing
activities |
|
(9,572 |
) |
|
|
(11,129 |
) |
|
|
(22,193 |
) |
|
|
(44,027 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows from
Financing Activities: |
|
|
|
|
Proceeds from issuance of
stock upon exercise of stock options |
|
3,204 |
|
|
|
340 |
|
|
|
5,953 |
|
|
|
4,554 |
|
Proceeds from issuance of
stock to employee stock purchase plan |
|
642 |
|
|
|
584 |
|
|
|
2,429 |
|
|
|
2,382 |
|
Shares withheld upon stock
vesting |
|
(1,149 |
) |
|
|
(485 |
) |
|
|
(6,570 |
) |
|
|
(6,939 |
) |
Non-controlling interest
distribution |
|
(560 |
) |
|
|
— |
|
|
|
(1,090 |
) |
|
|
(216 |
) |
Proceeds from borrowings
under revolving line of credit |
|
10,500 |
|
|
|
— |
|
|
|
138,000 |
|
|
|
— |
|
Repayments of borrowings
under revolving line of credit |
|
(60,500 |
) |
|
|
— |
|
|
|
(130,500 |
) |
|
|
— |
|
Principal payments of
long-term obligations |
|
(379 |
) |
|
|
(1,250 |
) |
|
|
(91,450 |
) |
|
|
(5,319 |
) |
Debt issuance costs |
|
— |
|
|
|
— |
|
|
|
(2,433 |
) |
|
|
— |
|
Purchase of company
stock |
|
— |
|
|
|
— |
|
|
|
(181,402 |
) |
|
|
— |
|
Repurchase of
noncontrolling interest |
|
— |
|
|
|
— |
|
|
|
(361 |
) |
|
|
— |
|
Net cash used in financing
activities |
|
(48,242 |
) |
|
|
(811 |
) |
|
|
(267,424 |
) |
|
|
(5,538 |
) |
Net increase (decrease) in
cash and cash equivalents |
|
6,219 |
|
|
|
20,249 |
|
|
|
(66,134 |
) |
|
|
56,166 |
|
Cash and cash equivalents
at beginning of period |
|
14,010 |
|
|
|
66,114 |
|
|
|
86,363 |
|
|
|
30,197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
at end of period |
$ |
20,229 |
|
|
$ |
86,363 |
|
|
$ |
20,229 |
|
|
$ |
86,363 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Disclosures of Cash Flow Information: |
|
|
|
|
Cash paid for
interest |
$ |
533 |
|
|
$ |
509 |
|
|
$ |
3,522 |
|
|
$ |
2,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for income
taxes, net of refunds received |
$ |
3,261 |
|
|
$ |
— |
|
|
$ |
14,278 |
|
|
$ |
315 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
Disclosures of Non-Cash Financing Activities: |
|
|
|
|
Note payable issued for
software licenses |
$ |
— |
|
|
$ |
— |
|
|
$ |
418 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital leases |
$ |
929 |
|
|
$ |
— |
|
|
$ |
2,936 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Days revenue outstanding
(1) |
|
38.0 |
|
|
|
44.0 |
|
|
|
38.0 |
|
|
|
44.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Our calculation of days revenue outstanding at
December 31, 2018 and 2017 is derived by dividing our ending
patient accounts receivable by our average daily patient revenue
for the three month periods ended December 31, 2018 and 2017,
respectively.
AMEDISYS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION (Amounts in millions,
except statistical information)
(Unaudited)
Segment Information - Home Health
|
For the Three-
Month Period
Ended December 31, |
|
|
2018 |
|
|
|
2017 |
|
Financial Information
(in millions): |
|
|
Medicare |
$ |
211.5 |
|
|
$ |
205.0 |
|
Non-Medicare |
|
92.5 |
|
|
|
76.9 |
|
|
|
|
|
|
|
|
|
Net service
revenue |
|
304.0 |
|
|
|
281.9 |
|
Cost of service |
|
189.4 |
|
|
|
174.9 |
|
|
|
|
|
|
|
|
|
Gross margin |
|
114.6 |
|
|
|
107.0 |
|
Asset impairment
charge |
|
— |
|
|
|
1.3 |
|
Other operating
expenses |
|
72.2 |
|
|
|
71.3 |
|
|
|
|
|
|
|
|
|
Operating income |
$ |
42.4 |
|
|
$ |
34.4 |
|
|
|
|
|
|
|
|
|
Same Store Growth
(1): |
|
|
Medicare revenue |
|
3 |
% |
|
|
2 |
% |
Non-Medicare revenue |
|
20 |
% |
|
|
24 |
% |
Total admissions |
|
6 |
% |
|
|
3 |
% |
Total volume (2) |
|
6 |
% |
|
|
7 |
% |
Total Episodic admissions
(3) |
|
5 |
% |
|
|
2 |
% |
Total Episodic volume
(4) |
|
5 |
% |
|
|
5 |
% |
Key Statistical
Data - Total (5): |
|
|
Medicare: |
|
|
Admissions |
|
47,864 |
|
|
|
46,421 |
|
Recertifications |
|
28,555 |
|
|
|
27,896 |
|
|
|
|
|
|
|
|
|
Total volume |
|
76,419 |
|
|
|
74,317 |
|
Completed episodes |
|
75,497 |
|
|
|
73,037 |
|
Visits |
|
1,328,025 |
|
|
|
1,273,435 |
|
Average revenue per
completed episode (6) |
$ |
2,891 |
|
|
$ |
2,858 |
|
Visits per completed
episode (7) |
|
17.7 |
|
|
|
17.6 |
|
Non-Medicare: |
|
|
Admissions |
|
30,092 |
|
|
|
27,421 |
|
Recertifications |
|
14,874 |
|
|
|
12,415 |
|
|
|
|
|
|
|
|
|
Total volume |
|
44,966 |
|
|
|
39,836 |
|
Visits |
|
722,677 |
|
|
|
619,745 |
|
Total
(5): |
|
|
Visiting Clinician Cost
per Visit |
$ |
84.27 |
|
|
$ |
83.88 |
|
Clinical Manager Cost per
Visit |
|
8.09 |
|
|
|
8.49 |
|
|
|
|
|
|
|
|
|
Total Cost per Visit |
$ |
92.36 |
|
|
$ |
92.37 |
|
Visits |
|
2,050,702 |
|
|
|
1,893,180 |
|
|
For the Year
Ended December 31, |
|
|
2018 |
|
|
|
2017 |
|
Financial Information
(in millions): |
|
|
Medicare |
$ |
830.8 |
|
|
$ |
793.3 |
|
Non-Medicare |
|
343.7 |
|
|
|
290.6 |
|
Net service
revenue |
|
1,174.5 |
|
|
|
1,083.9 |
|
Cost of service |
|
722.1 |
|
|
|
670.9 |
|
Gross margin |
|
452.4 |
|
|
|
413.0 |
|
Asset impairment
charge |
|
— |
|
|
|
1.3 |
|
Other operating
expenses |
|
279.8 |
|
|
|
281.9 |
|
Operating income |
$ |
172.6 |
|
|
$ |
129.8 |
|
|
|
|
|
|
|
|
|
Same Store Growth
(1): |
|
|
Medicare revenue |
|
6 |
% |
|
|
(4 |
%) |
Non-Medicare revenue |
|
18 |
% |
|
|
17 |
% |
Total admissions |
|
5 |
% |
|
|
2 |
% |
Total volume (2) |
|
7 |
% |
|
|
4 |
% |
Total Episodic admissions
(3) |
|
4 |
% |
|
|
1 |
% |
Total Episodic volume
(4) |
|
5 |
% |
|
|
3 |
% |
Key Statistical
Data - Total (5): |
|
|
Medicare: |
|
|
Admissions |
|
190,748 |
|
|
|
190,132 |
|
Recertifications |
|
112,773 |
|
|
|
106,774 |
|
Total volume |
|
303,521 |
|
|
|
296,906 |
|
Completed episodes |
|
296,223 |
|
|
|
290,227 |
|
Visits |
|
5,261,315 |
|
|
|
5,067,436 |
|
Average revenue per
completed episode (6) |
$ |
2,854 |
|
|
$ |
2,823 |
|
Visits per completed
episode (7) |
|
17.6 |
|
|
|
17.3 |
|
Non-Medicare: |
|
|
Admissions |
|
118,577 |
|
|
|
107,665 |
|
|
|
|
|
|
|
|
|
Recertifications |
|
55,736 |
|
|
|
46,364 |
|
Total volume |
|
174,313 |
|
|
|
154,029 |
|
Visits |
|
2,772,339 |
|
|
|
2,347,363 |
|
Total
(5): |
|
|
Visiting Clinician Cost
per Visit |
$ |
81.88 |
|
|
$ |
82.04 |
|
Clinical Manager Cost per
Visit |
|
8.01 |
|
|
|
8.44 |
|
Total Cost per Visit |
$ |
89.89 |
|
|
$ |
90.48 |
|
Visits |
|
8,033,654 |
|
|
|
7,414,799 |
|
(1) Same store information
represents the percent increase (decrease) in our Medicare,
Non-Medicare, Total and Episodic revenue, admissions or volume for
the period as a percent of the Medicare, Non-Medicare, Total and
Episodic revenue, admissions or volume of the prior period.
(2) Total volume includes all
admissions and recertifications. (3)
Total Episodic admissions includes admissions for Medicare and
Non-Medicare payors that bill on a 60-day episode of care basis.
(4) Total Episodic volume includes
admissions and recertifications for Medicare and Non-Medicare
payors that bill on a 60-day episode of care basis.
(5) Total includes acquisitions.
(6) Average Medicare revenue per
completed episode is the average Medicare revenue earned for each
Medicare completed episode of care.
(7) 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.
Segment Information - Hospice
|
For the Three-
Month Period
Ended December 31, |
|
|
2018 |
|
|
|
2017 |
|
Financial Information
(in millions): |
|
|
Medicare |
$ |
103.5 |
|
|
$ |
92.7 |
|
Non-Medicare |
|
5.3 |
|
|
|
5.2 |
|
Net service
revenue |
|
108.8 |
|
|
|
97.9 |
|
Cost of service |
|
56.8 |
|
|
|
50.6 |
|
Gross margin |
|
52.0 |
|
|
|
47.3 |
|
Other operating
expenses |
|
23.2 |
|
|
|
20.8 |
|
Operating income |
$ |
28.8 |
|
|
$ |
26.5 |
|
|
|
|
|
|
|
|
|
Same Store Growth
(1): |
|
|
Medicare revenue |
|
11 |
% |
|
|
14 |
% |
Non-Medicare revenue |
|
5 |
% |
|
|
131 |
% |
Hospice admissions |
|
12 |
% |
|
|
8 |
% |
Average daily census |
|
9 |
% |
|
|
12 |
% |
Key Statistical
Data - Total (2): |
|
|
Hospice admissions |
|
7,152 |
|
|
|
6,371 |
|
Average daily census |
|
7,809 |
|
|
|
7,162 |
|
Revenue per day, net |
$ |
151.46 |
|
|
$ |
148.62 |
|
Cost of service per
day |
$ |
79.02 |
|
|
$ |
76.81 |
|
Average discharge length
of stay |
|
103 |
|
|
|
96 |
|
|
For the Year
Ended December 31, |
|
|
2018 |
|
|
|
2017 |
|
Financial Information
(in millions): |
|
|
Medicare |
$ |
390.2 |
|
|
$ |
350.7 |
|
Non-Medicare |
|
20.7 |
|
|
|
17.1 |
|
Net service
revenue |
|
410.9 |
|
|
|
367.8 |
|
Cost of service |
|
212.0 |
|
|
|
187.5 |
|
Gross margin |
|
198.9 |
|
|
|
180.3 |
|
Other operating
expenses |
|
85.7 |
|
|
|
77.5 |
|
Operating income |
$ |
113.2 |
|
|
$ |
102.8 |
|
|
|
|
|
|
|
|
|
Same Store Growth
(1): |
|
|
Medicare revenue |
|
11 |
% |
|
|
17 |
% |
Non-Medicare revenue |
|
21 |
% |
|
|
20 |
% |
Hospice admissions |
|
8 |
% |
|
|
11 |
% |
Average daily census |
|
11 |
% |
|
|
15 |
% |
Key Statistical
Data - Total (2): |
|
|
Hospice admissions |
|
27,596 |
|
|
|
25,381 |
|
Average daily census |
|
7,588 |
|
|
|
6,820 |
|
Revenue per day, net |
$ |
148.36 |
|
|
$ |
147.75 |
|
Cost of service per
day |
$ |
76.53 |
|
|
$ |
75.31 |
|
Average discharge length
of stay |
|
100 |
|
|
|
93 |
|
(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.
Segment Information - Personal Care
|
For the Three-
Month Period
Ended December 31, |
|
2018 |
|
2017 |
Financial Information
(in millions): |
|
|
Medicare |
$ |
— |
|
$ |
— |
Non-Medicare |
|
21.6 |
|
|
18.1 |
|
|
|
|
|
|
|
|
|
Net service
revenue |
|
21.6 |
|
|
18.1 |
Cost of service |
|
16.1 |
|
|
13.7 |
|
|
|
Gross margin |
|
5.5 |
|
|
4.4 |
Other operating
expenses |
|
3.4 |
|
|
3.1 |
|
|
|
Operating income |
$ |
2.1 |
|
$ |
1.3 |
|
|
|
Key Statistical
Data: |
|
|
Billable hours |
|
890,696 |
|
|
782,140 |
Clients served |
|
13,054 |
|
|
12,646 |
Shifts |
|
406,119 |
|
|
365,360 |
Revenue per hour |
$ |
24.24 |
|
$ |
23.07 |
Revenue per shift |
$ |
53.16 |
|
$ |
49.39 |
Hours per shift |
|
2.2 |
|
|
2.1 |
|
|
|
For the Year
Ended December 31, |
|
2018 |
|
2017 |
Financial Information (in
millions): |
|
|
Medicare |
$ |
— |
|
$ |
— |
Non-Medicare |
|
77.2 |
|
|
59.6 |
|
|
|
Net service
revenue |
|
77.2 |
|
|
59.6 |
Cost of service |
|
58.8 |
|
|
45.0 |
|
|
|
Gross margin |
|
18.4 |
|
|
14.6 |
Other operating
expenses |
|
13.1 |
|
|
9.7 |
|
|
|
Operating income |
$ |
5.3 |
|
$ |
4.9 |
|
|
|
Key Statistical
Data: |
|
|
Billable hours |
|
3,248,304 |
|
|
2,604,794 |
Clients served |
|
17,981 |
|
|
16,774 |
Shifts |
|
1,468,541 |
|
|
1,195,511 |
Revenue per hour |
$ |
23.75 |
|
$ |
22.86 |
Revenue per shift |
$ |
52.54 |
|
$ |
49.80 |
Hours per shift |
|
2.2 |
|
|
2.2 |
|
|
|
|
|
|
Segment Information - Corporate
|
For the Three- Month Period
Ended December 31, |
|
2018 |
|
2017 |
Financial Information
(in millions): |
|
|
Other operating
expenses |
$ |
35.0 |
|
$ |
29.6 |
Depreciation and
amortization |
|
1.9 |
|
|
2.9 |
|
|
|
|
|
|
Total operating
expenses |
$ |
36.9 |
|
$ |
32.5 |
|
|
|
|
|
|
|
|
|
For the Year
Ended December 31, |
|
2018 |
|
2017 |
Financial Information (in
millions): |
|
|
Other operating
expenses |
$ |
127.6 |
|
$ |
117.8 |
Depreciation and
amortization |
|
8.4 |
|
|
12.5 |
|
|
|
|
|
|
Total operating expenses
before Securities Class Action Lawsuit settlement, net |
|
136.0 |
|
|
130.3 |
Securities
Class Action Lawsuit settlement, net |
|
— |
|
|
28.7 |
Total operating
expenses |
$ |
136.0 |
|
$ |
159.0 |
|
|
|
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 December 31, |
|
|
For the Year Ended
December 31, |
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Net income (loss)
attributable to Amedisys, Inc. |
$ |
27,461 |
|
|
$ |
(3,848 |
) |
|
$ |
119,346 |
|
|
$ |
30,301 |
|
Add: |
|
|
|
|
Income tax
expense |
|
8,875 |
|
|
|
32,794 |
|
|
|
38,859 |
|
|
|
50,118 |
|
Interest
expense, net |
|
1,521 |
|
|
|
1,377 |
|
|
|
7,092 |
|
|
|
4,873 |
|
Depreciation
and amortization |
|
3,379 |
|
|
|
3,984 |
|
|
|
13,261 |
|
|
|
17,123 |
|
Certain
items (1) |
|
3,124 |
|
|
|
24,414 |
|
|
|
3,739 |
|
|
|
61,429 |
|
Interest
component of certain items (1) |
|
(451 |
) |
|
|
(168 |
) |
|
|
(1,731 |
) |
|
|
(263 |
) |
Tax
component of certain items (1) |
|
— |
|
|
|
(21,424 |
) |
|
|
— |
|
|
|
( 21,424 |
) |
Adjusted EBITDA (2)
(6) |
$ |
43,909 |
|
|
$ |
37,129 |
|
|
$ |
180,566 |
|
|
$ |
142,157 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Service Revenue
Reconciliation:
|
For the Three-
Month Period
Ended December 31, |
|
|
For the Year Ended
December 31, |
|
2018 |
|
2017 |
|
|
2018 |
|
2017 |
Net service revenue |
$ |
434,378 |
|
$ |
397,961 |
|
$ |
1,662,578 |
|
$ |
1,511,272 |
Add: |
|
|
|
|
Certain
items (1) |
|
— |
|
|
— |
|
|
1,687 |
|
|
6,506 |
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net service
revenue (3) (6) |
$ |
434,378 |
|
$ |
397,961 |
|
$ |
1,664,265 |
|
$ |
1,517,778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income Attributable to Amedisys, Inc
Reconciliation:
|
For the Three-
Month Period
Ended December 31, |
|
|
For the Year Ended
December 31, |
|
|
2018 |
|
|
2017 |
|
|
|
2018 |
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to Amedisys, Inc. |
$ |
27,461 |
|
$ |
(3,848 |
) |
|
$ |
119,346 |
|
$ |
30,301 |
Add: |
|
|
|
|
Certain
items (1) |
|
2,312 |
|
|
23,233 |
|
|
|
2,767 |
|
|
45,627 |
Adjusted net income
attributable to Amedisys, Inc. (4) (6) |
$ |
29,773 |
|
$ |
19,385 |
|
|
$ |
122,113 |
|
$ |
75,928 |
|
|
|
|
|
Adjusted Net Income Attributable to Amedisys, Inc. per
Diluted Share:
|
For the Three-
Month Period
Ended December 31, |
|
|
For the Year Ended
December 31, |
|
|
2018 |
|
|
2017 |
|
|
|
2018 |
|
|
2017 |
Net income (loss)
attributable to Amedisys, Inc. common stockholders per diluted
share |
$ |
0.84 |
|
$ |
(0.11 |
) |
|
$ |
3.55 |
|
$ |
0.88 |
Add: |
|
|
|
|
Certain
items (1) |
|
0.07 |
|
|
0.67 |
|
|
|
0.08 |
|
|
1.33 |
Adjusted net income
attributable to Amedisys, Inc. common stockholders per
diluted share (5) (6) |
$ |
0.91 |
|
$ |
0.56 |
|
|
$ |
3.63 |
|
$ |
2.21 |
|
|
|
|
|
(1) The following details the
certain items for the three month periods and years ended
December 31, 2018 and 2017:
Certain Items:
|
For the Three-Month Period
Ended December 31, 2018 |
|
For the Year Ended
December 31, 2018 |
|
(Income) Expense |
|
(Income) Expense |
Certain Items Impacting Net Service
Revenue: |
|
|
Florida self-audit
(pre-acquisition) |
$ |
— |
|
|
$ |
1,687 |
|
Certain Items
Impacting Operating Expenses: |
|
|
Acquisition costs |
|
1,025 |
|
|
|
2,757 |
|
Legal fees -
non-routine |
|
56 |
|
|
|
1,465 |
|
Indemnity receivable
adjustment |
|
2,143 |
|
|
|
2,143 |
|
Certain Items
Impacting Total Other Income (Expense): |
|
|
Legal settlements |
|
— |
|
|
|
(1,437 |
) |
Miscellaneous, other
(income) expense, net |
|
(100 |
) |
|
|
(2,876 |
) |
Total |
$ |
3,124 |
|
|
$ |
3,739 |
|
Net of tax |
$ |
2,312 |
|
|
$ |
2,767 |
|
Diluted EPS |
$ |
0.07 |
|
|
$ |
0.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three-Month Period
Ended December 31, 2017 |
|
For the Year Ended
December 31, 2017 |
|
(Income) Expense |
|
(Income) Expense |
Certain Items Impacting Net Service
Revenue: |
|
|
Florida ZPIC audit |
$ |
— |
|
$ |
6,506 |
|
Certain Items
Impacting Operating Expenses: |
|
|
Acquisition costs |
|
48 |
|
|
1,025 |
|
Legal fees -
non-routine |
|
358 |
|
|
1,768 |
|
Securities
Class Action Lawsuit settlement, net |
|
— |
|
|
28,712 |
|
Restructuring
activity |
|
648 |
|
|
2,318 |
|
Data center
relocation |
|
— |
|
|
940 |
|
Asset impairment |
|
1,323 |
|
|
1,323 |
|
Certain Items
Impacting Total Other Income (Expense): |
|
|
Legal settlements |
|
— |
|
|
(2,014 |
) |
Miscellaneous, other
(income) expense, net |
|
613 |
|
|
(573 |
) |
Certain Items
Impacting Income Tax Expense: |
|
|
Remeasurement of deferred
tax assets and liabilities |
|
21,424 |
|
|
21,424 |
|
Total |
$ |
24,414 |
|
$ |
61,429 |
|
Net of tax |
$ |
23,233 |
|
$ |
45,627 |
|
Diluted EPS |
$ |
0.67 |
|
$ |
1.33 |
|
|
|
|
(2) Adjusted EBITDA is defined as
net income (loss) 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 (loss)
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 (loss) 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 measures 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.
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