Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three-month period ended March 31, 2019.

Three Month Periods Ended March 31, 2019 and 2018

  • Net service revenue increased $68.0 million to $467.3 million compared to $399.3 million in 2018.
  • Net income attributable to Amedisys, Inc. of $31.3 million compared to $27.2 million in 2018.
  • Net income attributable to Amedisys, Inc. per diluted share of $0.95 per diluted share compared to $0.79 in 2018.

Adjusted Quarterly Results*

  • Adjusted EBITDA of $54.9 million compared to $41.7 million in 2018.
  • Adjusted net service revenue of $467.8 million compared to $399.3 million in 2018.
  • Adjusted net income attributable to Amedisys, Inc. of $36.4 million compared to $27.3 million in 2018.
  • Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.11 compared to $0.79 in 2018.

*  See pages 10 and 11 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

Paul B. Kusserow, President and Chief Executive Officer stated, “I am very proud of our first quarter results as we continue our momentum into 2019. Most importantly and core to what we do, our clinical quality metrics continue to be at, or near, the top of the industry in both home health and hospice. Providing our clinically distinct care to as many patients wherever they call home is and will always be our mission. 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 Wednesday, May 1, 2019, at 11:00 a.m. ET to discuss its first 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 June 1, 2019 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13689585

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 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 471 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 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, 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, 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 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share data) (Unaudited)
     
  For the Three-Month Periods Ended March 31
    2019       2018  
Net service revenue $ 467,340     $ 399,262  
Cost of service, excluding depreciation and amortization   275,274       238,309  
General and administrative expenses:    
Salaries and benefits   94,830       75,631  
Non-cash compensation   6,615       4,044  
Other   43,402       41,680  
Depreciation and amortization   2,895       3,593  
Operating expenses   423,016       363,257  
Operating income   44,324       36,005  
Other income (expense):    
Interest income   24       120  
Interest expense   (3,349 )     (1,703 )
Equity in earnings from equity method investments   1,216       1,860  
Miscellaneous, net   236       601  
Total other (expense) income, net   (1,873 )     878  
Income before income taxes   42,451       36,883  
Income tax expense   (10,878 )     (9,563 )
Net income   31,573       27,320  
Net income attributable to noncontrolling interests   (269 )     (161 )
Net income attributable to Amedisys, Inc. $ 31,304     $ 27,159  
               
Basic earnings per common share:              
Net income attributable to Amedisys, Inc. common stockholders $ 0.98     $ 0.80  
Weighted average shares outstanding   32,001       33,971  
Diluted earnings per common share:    
Net income attributable to Amedisys, Inc. common stockholders $ 0.95     $ 0.79  
Weighted average shares outstanding   32,893       34,592  

     
AMEDISYS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data)
               
  March 31, 2019 (unaudited)   December 31, 2018
ASSETS              
Current assets:              
Cash and cash equivalents  $   10,554     $   20,229  
Patient accounts receivable      236,437         188,972  
Prepaid expenses      10,792         7,568  
Other current assets      13,948         7,349  
Total current assets      271,731         224,118  
Property and equipment, net of accumulated depreciation of $96,892 and $95,472      29,716         29,449  
Operating lease right of use assets      83,064         —   
Goodwill      649,514         329,480  
Intangible assets, net of accumulated amortization of $33,166 and $33,050     62,801         44,132  
Deferred income taxes      32,525         35,794  
Other assets      54,888         54,145  
Total assets  $   1,184,239     $   717,118  
               
LIABILITIES AND EQUITY              
Current liabilities:              
Accounts payable  $   32,797     $   28,531  
Payroll and employee benefits      111,312         92,858  
Accrued expenses      121,716         99,475  
Current portion of long-term obligations      6,038         1,612  
Current portion of operating lease liabilities      25,514         —   
Total current liabilities     297,377         222,476  
Long-term obligations, less current portion      303,733         5,775  
Operating lease liabilities, less current portion      55,840         —   
Other long-term obligations      6,089         6,234  
Total liabilities     663,039         234,485  
               
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; 36,337,743 and 36,252,280 shares issued; and 32,037,667 and 31,973,505 shares outstanding      36         36  
Additional paid-in capital      613,714         603,666  
Treasury stock, at cost 4,300,076 and 4,278,775 shares of common stock      (244,373 )       (241,685 )
Accumulated other comprehensive income      15         15  
Retained earnings      150,854         119,550  
Total Amedisys, Inc. stockholders’ equity      520,246         481,582  
Noncontrolling interests      954         1,051  
Total equity      521,200         482,633  
Total liabilities and equity  $   1,184,239     $   717,118  
               

     
AMEDISYS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING (Amounts in thousands, except statistical information) (Unaudited)
               
  For the Three-Month Periods Ended March 31
    2019       2018  
Cash Flows from Operating Activities:              
Net income $ 31,573     $ 27,320  
Adjustments to reconcile net income to net cash provided by operating activities:              
Depreciation and amortization   2,895       3,593  
Non-cash compensation   6,615       4,044  
401(k) employer match   2,379       2,567  
Amortization and impairment of operating lease right of use assets   8,345        
(Gain) loss on disposal of property and equipment   (4 )     563  
Deferred income taxes   3,269       2,945  
Equity in earnings from equity method investments   (1,216 )     (1,860 )
Amortization of deferred debt issuance costs/debt discount   213       178  
Return on equity investment   725       625  
Changes in operating assets and liabilities, net of impact of acquisitions:              
Patient accounts receivable   (22,333 )     8,260  
Other current assets   (10,635 )     (6,982 )
Other assets   (338 )     46  
Accounts payable   (11,140 )     (1,523 )
Accrued expenses   18,838       (1,807 )
Other long-term obligations   (144 )     2,348  
Operating lease liabilities   (8,139 )      
Operating lease right of use assets   (844 )      
               
Net cash provided by operating activities   20,059       40,317  
               
Cash Flows from Investing Activities:              
Proceeds from sale of deferred compensation plan assets   208       462  
Proceeds from the sale of property and equipment   65       5  
Investments in equity method investees   (120 )      
Purchases of property and equipment   (1,198 )     (1,462 )
Acquisitions of businesses, net of cash acquired   (327,867 )     (2,250 )
               
Net cash used in investing activities   (328,912 )     (3,245 )
               
Cash Flows from Financing Activities:              
Proceeds from issuance of stock upon exercise of stock options   356       125  
Proceeds from issuance of stock to employee stock purchase plan   782       597  
Shares withheld upon stock vesting   (2,688 )     (1,305 )
Noncontrolling interest distribution   (366 )     (28 )
Proceeds from borrowings under term loan   175,000        
Proceeds from borrowings under revolving line of credit   161,500        
Repayments of borrowings under revolving line of credit   (34,000 )      
Principal payments of long-term obligations   (559 )     (2,819 )
Debt issuance costs   (847 )      
Net cash provided by (used in) financing activities   299,178       (3,430 )
Net (decrease) increase in cash and cash equivalents   (9,675 )     33,642  
Cash and cash equivalents at beginning of period   20,229       86,363  
Cash and cash equivalents at end of period $ 10,554     $ 120,005  
               
Supplemental Disclosures of Cash Flow Information:              
Cash paid for interest $ 725     $ 1,065  
               
Cash paid for income taxes, net of refunds received $ 404     $ 2,813  
               
Days revenue outstanding (1)   41.2       41.4  

(1)  Our calculation of days revenue outstanding at March 31, 2019 and 2018 is derived by dividing our ending patient accounts receivable by our average daily patient revenue for the three month periods ended March 31, 2019 and 2018, respectively.

               
AMEDISYS, INC. AND SUBSIDIARIES SEGMENT INFORMATION (Amounts in millions, except statistical information) (Unaudited)
               
Segment Information - Home Health              
  For the Three- Month Periods Ended March 31,
    2019       2018  
Financial Information (in millions):              
Medicare $ 213.4     $ 205.0  
Non-Medicare   96.7       79.1  
Net service revenue   310.1       284.1  
Cost of service   185.7       174.4  
Gross margin   124.4       109.7  
Other operating expenses   72.4       68.8  
Operating income $ 52.0     $ 40.9  
               
Same Store Growth (1):              
Medicare revenue   4 %     5 %
Non-Medicare revenue   22 %     14 %
Total admissions   6 %     4 %
Total volume (2)   6 %     7 %
Total Episodic admissions (3)   4 %     3 %
Total Episodic volume (4)   3 %     6 %
Key Statistical Data - Total (5):              
Medicare:              
Admissions   50,320       49,455  
Recertifications   27,112       27,236  
Total volume   77,432       76,691  
Completed episodes   73,978       72,836  
Visits   1,331,409       1,314,126  
Average revenue per completed episode (6) $ 2,902     $ 2,792  
Visits per completed episode (7)   17.4       17.2  
Non-Medicare:              
Admissions   33,649       29,889  
Recertifications   14,683       12,432  
Total volume   48,332       42,321  
Visits   753,679       660,933  
Total (5):              
Visiting Clinician Cost per Visit $ 81.05     $ 80.34  
Clinical Manager Cost per Visit   8.01       7.99  
Total Cost per Visit $ 89.06     $ 88.33  
Visits   2,085,088       1,975,059  

(1)  Same store information represents the percent change 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 and denovos. (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 Periods Ended March 31,
  2019   2018
Financial Information (in millions):          
Medicare $ 130.7     $ 91.8  
Non-Medicare   6.3       5.5  
Net service revenue   137.0       97.3  
Cost of service   74.1       50.1  
Gross margin   62.9       47.2  
Other operating expenses   29.4       20.2  
Operating income $ 33.5     $ 27.0  
               
Same Store Growth (1):              
Medicare revenue   9 %     12 %
Hospice admissions   5 %     5 %
Average daily census   8 %     12 %
Key Statistical Data - Total (2):    
Hospice admissions   9,711       6,933  
Average daily census   9,982       7,214  
Revenue per day, net $ 152.56     $ 149.80  
Cost of service per day $ 82.43     $ 77.17  
Average discharge length of stay   98       97  

(1)      Same store information represents the percent change in our Medicare revenue, Hospice admissions or average daily census for the period as a percent of the Medicare revenue, Hospice admissions or average daily census of the prior period. (2)      Total includes acquisitions and denovos.

     
Segment Information - Personal Care    
  For the Three- Month Periods Ended March 31,
  2019   2018
Financial Information (in millions):        
Medicare $   $
Non-Medicare   20.2     17.9
Net service revenue   20.2     17.9
Cost of service   15.5     13.8
Gross margin   4.7     4.1
Other operating expenses   3.2     3.3
Operating income $ 1.5   $ 0.8
           
Key Statistical Data (1):          
Billable hours   833,617     749,953
Clients served   12,801     12,536
Shifts   376,182     348,166
Revenue per hour $ 24.19   $ 23.85
Revenue per shift $ 53.60   $ 51.36
Hours per shift   2.2     2.2

(1)      Total includes acquisitions.

     
Segment Information - Corporate    
  For the Three- Month Periods Ended March 31,
  2019   2018
Financial Information (in millions):          
Other operating expenses $ 41.3   $ 30.2
Depreciation and amortization   1.4     2.5
Total operating expenses $ 42.7   $ 32.7
           

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 March 31,
  2019     2018
Net income attributable to Amedisys, Inc. $ 31,304     $ 27,159  
Add:    
Income tax expense   10,878       9,563  
Interest expense, net   3,325       1,583  
Depreciation and amortization   2,895       3,593  
Certain items (1)   6,914       188  
Interest component of certain items (1)   (441 )     (383 )
Adjusted EBITDA (2) (6) $ 54,875     $ 41,703  
               
Adjusted Net Service Revenue Reconciliation:    
  For the Three- Month Period Ended March 31,
  2019   2018
Net service revenue $ 467,340     $ 399,262
Add:    
Certain items (1)   478      
Adjusted net service revenue (3) (6) $ 467,818     $ 399,262
             
Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:    
  For the Three- Month Period Ended March 31,
  2019   2018
Net income attributable to Amedisys, Inc. $ 31,304   $ 27,159
Add:    
Certain items (1)   5,141     139
Adjusted net income attributable to Amedisys, Inc. (4) (6) $ 36,445   $ 27,298
           
Adjusted Net Income Attributable to Amedisys, Inc. per Diluted Share:
  For the Three- Month Period Ended March 31,
  2019   2018
Net income attributable to Amedisys, Inc. common stockholders per diluted share $ 0.95   $ 0.79
Add:    
Certain items (1)   0.16    
Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (5) (6) $ 1.11   $ 0.79
           

(1)  The following details the certain items for the three month periods ended March 31, 2019 and 2018:

Certain Items:              
  For the Three-Month Period Ended March 31, 2019   For the Three-Month Period Ended March 31, 2018
  (Income) Expense   (Income) Expense
Certain Items Impacting Net Service Revenue:              
Contingency accrual $ 1,018     $  
Planned closures (7)   (540 )      
Certain Items Impacting Cost of Service:    
Planned closures (7)   844        
Certain Items Impacting Operating Expenses:    
Planned closures (7)   88        
Acquisition costs   5,758       435  
Legal fees - non-routine   (132 )     562  
Certain Items Impacting Total Other Income (Expense):    
Miscellaneous, other (income) expense, net   (122 )     (809 )
     
Total $ 6,914     $ 188  
     
Net of tax $ 5,141     $ 139  
     
Diluted EPS $ 0.16     $  
     

(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. (7)  Planned closures consist of in-patient units acquired from Compassionate Care Hospice whose operations ceased in April 2019.

 

 

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