-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, By6ERRMkj5xV8f+TI8GE0M6SZvZbR6zDIuT8cTdU8Nhk9S+5R7wK3r2YD/2BtiTq 7KzmfjSSDnVTdLl8COQlOQ== 0000950134-02-007611.txt : 20020625 0000950134-02-007611.hdr.sgml : 20020625 20020625164700 ACCESSION NUMBER: 0000950134-02-007611 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20020626 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: FILED AS OF DATE: 20020625 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMEDISYS INC CENTRAL INDEX KEY: 0000896262 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-HOME HEALTH CARE SERVICES [8082] IRS NUMBER: 113131700 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-24260 FILM NUMBER: 02686697 BUSINESS ADDRESS: STREET 1: 11100 MEAD ROAD STE 300 CITY: BATON ROUGE STATE: LA ZIP: 70816 BUSINESS PHONE: 2252922031 MAIL ADDRESS: STREET 1: 11100 MEAD ROAD STE 300 CITY: BATON ROUGE STATE: LA ZIP: 70816 FORMER COMPANY: FORMER CONFORMED NAME: M&N CAPITAL CORP DATE OF NAME CHANGE: 19930125 FORMER COMPANY: FORMER CONFORMED NAME: ANALYTICAL NURSING MANAGEMENT CORP DATE OF NAME CHANGE: 19940819 8-K 1 d97932e8vk.txt FORM 8-K U.S. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K - -------------------------------------------------------------------------------- CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of Earliest Event Reported): June 26, 2002 AMEDISYS, INC. -------------- (Exact Name of Registrant as Specified in Charter) Delaware -------- (State or Other Jurisdiction of Incorporation or Organization) 0-24260 11-3131700 ------- ---------- (Commission File Number) (I.R.S. Employer Identification No.) 11100 Mead Road, Suite 300, Baton Rouge, LA 70816 ------------------------------------------------- (Address of principal executive offices including zip code) (225) 292-2031 -------------- (Registrant's telephone number, including area code) ITEM 9. REGULATION FD DISCLOSURE On June 26, 2002, representatives of Amedisys, Inc. (the "Company") will begin making presentations at investor conferences using slides containing the information attached to this Current Report on Form 8-K as Exhibit 99.1. We are furnishing the text of these slides pursuant to the Securities and Exchange Commission's Regulation FD. This information is furnished pursuant to Item 9 of Form 8-K and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section, unless we specifically incorporates it by reference in a document filed under the Securities Act of 1934. The Company expects to use these slides, in whole or in part, and possibly with modifications, in connection with presentations to investors, analysts and others during 2002. By filing this report on Form 8-K and furnishing this information, we make no admission as to the materiality of any information in this report that is required to be disclosed solely by reason of Regulation FD. The information contained in the slides is summary information that is intended to be considered in the context of our Securities and Exchange Commission ("SEC") filings and other public announcements that we may make, by press release or otherwise, from time to time. We undertake no duty or obligation to publicly update or revise the information contained in this report, although we may do so from time to time as our management believes is warranted. Any such updating may be made through the filing of other reports or documents with the SEC, through press releases or through other public disclosure. When included in this Current Report on Form 8-K, the words "expects", "intends", "anticipates", "believes", "estimates", and analogous expressions are intended to identify forward-looking statements. Such statements inherently are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include, among others, general economic and business conditions, current cash flows and operating deficits, debt service needs, adverse changes in federal and state laws relating to the health care industry, competition, regulatory initiatives and compliance with governmental regulations, customer preferences and various other matters, many of which are beyond the Company's control. These forward-looking statements speak only as of the date of the Current Report on Form 8-K. The Company expressly disclaims any obligation or undertaking to release publicly any updates or any changes in the Company's expectations with regard thereto or any changes in events, conditions or circumstances on which any statement is based. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (a) Financial Statements of Business Acquired. Not applicable. (b) Pro Forma Financial Information. Not applicable. (c) Exhibit No. Page ------- ---- 99.1(i) Text of Investor Relations Slide Show in use beginning June 26, 2002........................... A-1 (i) Filed herewith. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AMEDISYS, INC. By: /s/ GREGORY H. BROWNE ------------------------------- Gregory H. Browne Chief Financial Officer DATE: June 25, 2002 INDEX TO EXHIBITS
EXHIBIT NUMBER DESCRIPTION ------- ----------- 99.1(i) Text of Investor Relations Slide Show in use beginning June 26, 2002
EX-99.1 3 d97932exv99w1.txt TEXT OF INVESTOR RELATIONS SLIDE SHOW EXHIBIT 99.1 Amedisys A Healthy Investment for the 21st Century NASDAQ: AMED ================================================================================ Statements contained in this presentation which are not historical facts are forward-looking statements. These forward-looking statements and all other statements that may be contained in this presentation that are not historical facts are subject to a number of risks and uncertainties, and actual results may differ materially than those forecasted. Such forward-looking statements are estimates reflecting the best judgment of Amedisys, Inc. management based upon currently available information. Certain factors which could affect the accuracy of such forward-looking statements are identified in the public filings made by Amedisys, Inc. with the Securities and Exchange Commission, and forward-looking statements contained herein, or other public statements of Amedisys, Inc. or its management should be considered in light of those factors. ================================================================================ Amedisys Facts o Largest home nursing company in the South o Leader in the largest industry segment o Profitable under Medicare payment system o Revenue growth and earnings momentum o Improved balance sheet o Experienced management team ================================================================================ Largest Home Care Nursing Company in the South 57 Locations Oklahoma - 4 Texas - 1 Louisiana - 5 Alabama - 10 Tennessee - 11 Georgia - 21 Florida - 2 South Carolina - 1 North Carolina - 1 Virginia - 1 ================================================================================ Leader in the Largest Industry Segment Total in 2001 - $41.3 Billion Nursing 70% Infusion 14% Respiratory 10% NURSING DME 6% Amedisys Gentiva Odyssey RESPIRATORY Apria Lincare INFUSION Option Care Source: Jefferies & Co. 2001 ================================================================================ What is Medicare's Prospective Payment System? Enacted with Balance Budget Act in 1997 Implemented On October 1, 2000 Fixed rate of payment for an episode of care Standard episode is 60 days Payment determined by... National standardized base rate Diagnosis and acuity of the patient Regional location Cost effective companies can be profitable ================================================================================ Profitable in Medicare Payment System
Prospective Payment System Example: Average Amedisys Patient Fixed Rate $ 2,274 Average Illness Adj. 289 Wage Index (63) Total Payment Per Episode $ 2,500
================================================================================ Profitable in Medicare Payment System
Prospective Payment System Example: Average Amedisys Patient Total Payment Per Episode $ 2,500 Average Visits Per Episode 20 Direct Cost Per Visit $ 50 ---- Total Direct Cost Per Episode (20 Visits X $50 per visit) $(1,000) Gross Margin Per Episode $ 1,500
================================================================================ Revenue Growth
In Millions 1st Q 01 $22.1 2nd Q 01 $27.2 3rd Q 01 $29.7 4th Q 01 $31.1 1st Q 02 $31.9
================================================================================ Earnings Momentum Financial Performance
1st Q 02 1st Q 01 2001 2000 Amounts in millions except Earnings Per Share Net Service Revenues $ 31.9 $ 22.2 $ 110.2 $ 88.2 Operating Income (Loss) $ 3.0 $ 0.1 $ 7.5 $ (2.6) Net Income from Continuing $ 2.6 $ (0.4) $ 5.3 $ (4.3) Operations - Pre-Tax EPS from Continuing Operations - Fully Diluted $ 0.25 $ (0.07) $ 0.64 $ (1.00) EPS - Fully Diluted and Fully Taxed $ 0.19 $ 0.41
================================================================================ Improved Balance Sheet o Recently completed $9.5 M private placement of common stock o Significant improvement in collections and working capital o On-going reduction in debt ================================================================================ Improved Balance Sheet
Total Debt (In Millions) Total Stockholders Equity (In Millions) 1st Q 01 $ 41.1 $ (3.9) 2nd Q 01 $ 37.2 $ (2.4) 3rd Q 01 $ 36.6 $ 0.7 4th Q 01 $ 40.1 $ 3.3 1st Q 02 $ 32.4 $ 6.5
================================================================================ Experienced Management Team o William F. Borne o Chairman and Chief Executive Officer o Larry R. Graham o Chief Operating Officer o Gregory H. Browne o Chief Financial Officer ================================================================================ Amedisys is Positioned for Growth Growth Drivers Consolidation of Home Health Transition from Facility to Aging of America Industry Non-Facility Care
================================================================================ Consolidation of Home Health Industry Internal Growth Strategies o Gain market share from agency attrition o Increase referral base with superior DSM programs o Build physician relationships with strong sales force o Develop managed care business ================================================================================ Consolidation of Home Health Industry External Growth Strategies o Expand service area with quality acquisitions o Valuations of agencies increasing but still attractive o 26% decrease in companies since BBA 1997 o 30% of Medicare certified agencies are hospital based o Hospitals lost the cost shifting benefit and are divesting ================================================================================
Acquisition History Alliance Home Health January 1998 Oklahoma Precision Home Health April 1998 Louisiana Columbia HCA November 1998 Southern States Northwest Home Health October 2000 Georgia Mid-Florida Home Health November 2000 Florida Seton Home Health Services April 2001 Alabama HealthCalls June 2001 South Carolina Christus Spohn Home Health April 2002 Texas
================================================================================ Transition from Facility to Non-Facility Care o Health care costs are 14% of the GDP o Home care is a cost effective alternative o Millimann & Robertson - 56-64% of inpatient care is avoidable o Home care reduces the length of hospital stays o Payors encourage home care to preserve margins o 90% of AARP members prefer to be treated at home ================================================================================ Transition from Facility to Non-Facility Care
National Healthcare Expenditures as a Percentage of GDP 1980 8.8% 1990 12.0% 1993 13.4% 1996 13.3% 1997 13.2% 1998 13.0% 1999 13.0% 2000* 13.1% 2001* 13.4% 2002* 13.9% 2003* 14.3% 2004* 14.6% 2005* 14.9% 2006* 15.1% 2007* 15.3% 2008* 15.5% 2009* 15.7% 2010* 15.9% Source: HCFA Online * Estimated
================================================================================ Transition from Facility to Non-Facility Care
Average Per Diem Cost Comparison Inpatient Hospital $1,000 Skilled Nursing Facility $500 Home Health Care $90 Source: Jefferies & Co. 2001
================================================================================ Transition from Facility to Non-Facility Care
Home Healthcare Spending 1980 $ 2.4 1990 $12.6 1993 $21.9 1996 $33.6 1997 $34.5 1998 $33.5 1999 $33.1 2000* $36.6 2001* $41.3 2002* $46.6 2003* $51.4 2004* $56.4 2005* $61.1 2006* $66.0 2007* $71.2 2008* $76.2 2009* $81.5 2010* $87.0 Dollars in billions * Projected Source: HCFA Online
================================================================================ Aging of America
Pop. 65 yrs. and over. US, 1950 - 2030 1950 1960 1970 1980 1990 2000 2010 2020 2030 85+ 0.6 0.9 1.5 2.2 3.0 4.3 5.7 6.5 8.5 65+ 12.2 16.6 20.1 25.5 31.1 34.7 39.4 53.2 69.4
Numbers in millions Source: Health, U.S. 1999, Health and Aging Chartbook, U.S. Health and Human Services Dept.
Current Patients per 1,000 Population Women Men 65-74 yrs. 27.6 18.2 75-84 yrs. 84.1 55.4 85+ 130.1 99.5
================================================================================ Aging of America
Home Health Services Received By Patients 65 Years of Age and Over Nursing 85.3% Homemaker 28.7% Physical therapy 20.0% Social services 10.9% Medications 9.9% Continuous home care 5.8% Occupational therapy 4.8% MD services 3.7% Nutrition 3.4% Other services 15.1%
Source, U.S. 1999, Health and Aging Chartbook, U.S. Health and Human Services Dept. ================================================================================ Amedisys has a Profitable Growth Strategy
Growth Strategy Going Forward Capitalize on Exploit Trend to Grow with the Industry Non-Facility Aging of America Consolidation Based Care o Patients need more o AMED will expand o AMED will provide a health care as they age Markets with sale force viable solution to the o AMED provides home o AMED will acquire increasing cost of health care - a patient's first hospital based agencies care choice for care
================================================================================ Why Invest in Amedisys? o Demonstrated capacity for profitable growth o Well positioned in a rapidly growing health care segment o Successful record of acquiring and integrating companies o Operating with the right capital base in place o Strong and experienced management team o Clear and identifiable growth strategy ================================================================================ Amedisys The Healthy Investment for the 21st Century -----END PRIVACY-ENHANCED MESSAGE-----