EX-99.1 3 d98812exv99w1.txt PRESS RELEASE DATED AUGUST 7, 2002 EXHIBIT 99.1 AMEDISYS REPORTS SECOND QUARTER FULLY-TAXED NET INCOME OF $1,660,000 COMPANY TO HOST CONFERENCE CALL ON THURSDAY, AUGUST 8, 2002 AT 11:00 EDT BATON ROUGE, Louisiana (August 7, 2002) - Amedisys, Inc. (NasdaqSC: "AMED"), one of America's leading home health nursing companies, today reported its financial results for the second quarter and first half of 2002. For the three months ended June 30, 2002, revenues increased 21% to $32.9 million, compared with $27.2 million in the second quarter of 2001. Pretax income improved to $2,646,000 in the most recent quarter, versus a pretax income from continuing operations of $1,179,000 in the prior-year period. Net income of $1,660,000, or $0.17 per diluted share, in the second quarter of 2002 compared favorably with net income from continuing operations of $1,179,000, or $0.15 per diluted share, in the corresponding period of the previous year. The Company accrued income taxes of $986,000 (an effective rate of 37%) in the quarter ended June 30, 2002, whereas no income tax expense was recorded in the year-earlier quarter. As previously reported, Amedisys, Inc. will be recording income tax expense at an expected annual rate of approximately 38% for the balance of fiscal 2002. For the six months ended June 30, 2002, revenues increased 31% to $64.7 million, compared with $49.4 million in the corresponding period of 2001. Pretax income improved to $5,210,000 in the most recent period, when compared with a pretax income from continuing operations of $770,000 in the prior-year period. Net income totaled $5,662,000, or $0.63 per diluted share, in the six months ended June 30, 2002 compared with net income from continuing operations of $770,000, or $0.10 per diluted share, in the corresponding period of the previous year. The Company recorded an income tax benefit of $452,000 for the six months ended June 30, 2002, whereas no income tax expense or benefit was recorded in the first half of 2001. During the six months ended June 30, 2002, the Company recorded the benefit of the elimination of the valuation allowance for net deferred tax assets and recorded income tax expense at the expected annual rate. Assuming an effective income tax rate of 38%, the Company would have reported net income of $3,230,000, or $0.36 per diluted share, for the six months ended June 30, 2002. The significant improvement in revenues and profitability was primarily attributable to growth in admissions, increased reimbursement from Medicare resulting from price increases in April 2001 and October 2001, and contributions from acquisitions completed since January 1, 2001. "Amedisys, Inc. has continued to make excellent progress in a number of areas, and we are pleased with the continued improvement in our Company's financial performance during the first half of 2002," stated William F. Borne, Chief Executive Officer of Amedisys, Inc. "The Corpus Christi acquisition, completed on April 1, has performed well to date and, with the recently announced acquisition of Baylor All Saints Home Care in Fort Worth, emphasizes our focus on further penetration into the Texas market. We are continuing our evaluation of several potential acquisitions at this time, although they are not yet to the point where we feel comfortable announcing details." "Towards the end of our second quarter and continuing through July, the Company has experienced a slowdown in admission growth in certain markets," continued Borne. "In response to this issue, management has completed a realignment of the sales organization, which we believe will address this slowdown and contribute to the ongoing growth and vitality of Amedisys, Inc. However, should this trend continue, it would have an impact on the internal growth rate previously communicated and on future operating results." "Our substantial balance sheet improvement has continued during the most recent quarter, most notably with the completion of the private placement on April 26, 2002. Stockholder's Equity totaled $20.6 million at June 30, 2002, compared with $3.3 million at the end of 2001." "Through continued improvement in receivable collections and ongoing scheduled principal payments, total debt has been reduced to $26.5 million at June 30, 2002 compared with $40.0 million at December 31, 2001, and the Company's cash balance at quarter-end stood at $9.9 million." "The Company previously advised that it would apply for extended payment terms on over $7 million of Medicare cost report liabilities primarily attributable to a one-time special payment enacted through legislation," continued Borne. "Given the published conditions under which such requests will be granted, and the fact that several approvals from the appropriate fiscal intermediary have now been received, we consider it appropriate to reflect approximately $5.6 million of these liabilities as long-term. After consultation with our newly appointed independent auditors, we have also changed the presentation of the remaining short-term Medicare liabilities, reflecting these as current liabilities rather than as an offset against patient accounts receivable. We believe this change will assist investors in their analysis of the Company." "Further, Amedisys, Inc. has renegotiated an extension in the maturity of its Note Payable to NPF Capital, Inc., from December 2003 to June 2005." "As a result of the significant balance sheet changes outlined above, we are pleased to report that, at June 30, 2002, the Company had positive working capital for the first time since 1997, and that Stockholder's Equity now exceeds net debt (total debt including capital leases less cash)." "Our stated objective has been to secure a listing on The Nasdaq National Market later in the year, and the Company intends to make a formal application for such listing shortly after the filing of our 10-Q for the June Quarter. If successful, this should further expand recognition of Amedisys within the investment community," concluded Borne. THE COMPANY WILL PROVIDE FURTHER INFORMATION TOMORROW ON THESE RESULTS DURING A TELECONFERENCE CALL THAT IS SCHEDULED FOR 11:00 A.M. EDT ON AUGUST 8, 2002. TO ACCESS THIS CALL, PLEASE DIAL 800-915-4836. FOR INTERNATIONAL PARTICIPANTS, PLEASE DIAL 973-317-5319. A REPLAY OF THE CONFERENCE CALL WILL BE AVAILABLE UNTIL AUGUST 15, 2002, BY DIALING 973-709-2089. THE ACCESS CODE IS #252438 FOR THE REPLAY. Amedisys, Inc., a leading multi-regional provider of home health nursing services, is headquartered in Baton Rouge, Louisiana. Its common stock trades on The Nasdaq SmallCap Market under the symbol "AMED". This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "expect" or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products and services in the marketplace, competitive factors, changes in government reimbursement procedures, dependence upon third-party vendors, and other risks discussed in the Company's periodic filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. Additional information on this Company can be found on the World Wide Web http://www.amedisys.com For further information, please contact: Greg Browne, Chief Financial Officer at (225) 292-2031 or RJ Falkner & Company, Inc., Investor Relations Counsel at (800) 377-9893 or via e-mail at info@rjfalkner.com AMEDISYS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2002 AND 2001 (UNAUDITED, DOLLAR AMOUNTS IN 000'S, EXCEPT PER SHARE DATA)
Three months ended Six months ended June 30, 2002 June 30, 2001 June 30, 2002 June 30, 2001 ------------- ------------- ------------- ------------- Income: Service revenue $ 32,854 $ 27,198 $ 64,704 $ 49,370 Cost of service revenue 14,573 12,157 28,442 21,924 ------------- ------------- ------------- ------------- Gross Margin 18,281 15,041 36,262 27,446 ------------- ------------- ------------- ------------- General and administrative expenses: Salaries and benefits 9,637 7,560 19,068 14,202 Other 5,679 5,671 11,236 11,313 ------------- ------------- ------------- ------------- Total general and administrative expenses 15,316 13,231 30,304 25,515 ------------- ------------- ------------- ------------- Operating income 2,965 1,810 5,958 1,931 Other income and expense: Interest income 24 99 42 254 Interest expense (420) (809) (998) (1,511) Other income, net 77 79 208 96 ------------- ------------- ------------- ------------- Total other expense, net (319) (631) (748) (1,161) ------------- ------------- ------------- ------------- Net income before income taxes and discontinued operations 2,646 1,179 5,210 770 Income tax expense (benefit) 986 -- (452) -- ------------- ------------- ------------- ------------- Net income before discontinued operations 1,660 1,179 5,662 770 Income (loss) from discontinued operations, net of Income taxes -- 78 -- (129) ------------- ------------- ------------- ------------- Net income $ 1,660 $ 1,257 $ 5,662 $ 641 ============= ============= ============= ============= BASIC WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 8,531 5,777 7,890 5,636 Basic income per common share: Net income before discontinued operations $ 0.19 $ 0.20 $ 0.72 $ 0.13 Income (loss) from discontinued operations, net of income taxes -- 0.01 -- (0.02) ------------- ------------- ------------- ------------- Net income $ 0.19 $ 0.21 $ 0.72 $ 0.11 ============= ============= ============= ============= DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING 9,683 7,920 9,019 7,750 Diluted income per common share: Net income before discontinued operations $ 0.17 $ 0.15 $ 0.63 $ 0.10 Income (loss) from discontinued operations, net of income taxes -- 0.01 -- (0.02) ------------- ------------- ------------- ------------- Net income $ 0.17 $ 0.16 $ 0.63 $ 0.08 ============= ============= ============= =============
AMEDISYS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2002 AND DECEMBER 31, 2001 (UNAUDITED, DOLLAR AMOUNTS IN 000'S)
June 30, 2002 December 31, 2001 --------------- ----------------- CURRENT ASSETS: Cash and Cash Equivalents $ 9,921 $ 3,515 Patient Accounts Receivable, Net of Allowance for Doubtful Accounts of $2,312 in June 2002 and $3,125 in December 2001 15,111 23,682 Prepaid Expenses 2,088 244 Deferred Income Taxes 1,965 -- Inventory and Other Current Assets 1,014 822 --------------- --------------- Total Current Assets 30,099 28,263 Property and Equipment, net 9,363 10,290 Other Assets, net 24,169 22,301 --------------- --------------- Total Assets $ 63,631 $ 60,854 =============== =============== CURRENT LIABILITIES: Accounts Payable $ 1,793 $ 2,440 Accrued Expenses: Payroll and Payroll Taxes 6,330 6,798 Insurance 1,862 1,881 Income Taxes Payable 1,034 930 Legal Settlements 974 1,227 Other 2,352 3,082 Notes Payable 457 9,305 Current Portion of Long-term Debt 3,798 5,355 Current Portion of Obligations under Capital Leases 2,358 2,391 Current Portion of Medicare Liabilities 6,146 13,214 --------------- --------------- Total Current Liabilities 27,104 46,623 Long-term Debt 6,062 5,591 Obligations under Capital Leases 2,080 3,208 Long-term Medicare Liabilities 5,615 958 Deferred Income Taxes 1,134 -- Other Long-term Liabilities 1,016 1,099 --------------- --------------- Total Liabilities 43,011 57,479 --------------- --------------- Minority Interest in Consolidated Subsidiaries 66 66 --------------- --------------- STOCKHOLDER'S EQUITY: Common Stock (9,007,458 Shares in June 2002 and 7,178,152 Shares in December 2001) 9 7 Additional Paid-in Capital 28,120 16,539 Treasury Stock (4,167 Shares of Common Stock in June 2002 and December 2001) (25) (25) Retained Earnings (Deficit) (7,550) (13,212) --------------- --------------- Total Stockholder's Equity 20,554 3,309 --------------- --------------- Total Liabilities and Stockholder's Equity $ 63,631 $ 60,854 =============== ===============