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 the Reconciliation of Non-GAAP Financial Measures to
GAAP Measures table 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.
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.
Contact: |
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Investor
Contact: |
|
|
Media
Contact: |
|
|
Amedisys,
Inc. |
|
|
Amedisys,
Inc. |
|
|
David
Castille |
|
|
Kendra
Kimmons |
|
|
Managing
Director, Treasury/Finance |
|
|
Vice President,
Marketing & Communications |
|
|
(855)
259-2046 |
|
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(225)
299-3720 |
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|
IR@amedisys.com |
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|
kendra.kimmons@amedisys.com |
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
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.
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 |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
|
|
|
(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.
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