EX-99.1 3 d04038exv99w1.txt PRESS RELEASE EXHIBIT 99.1 (AMEDISYS LOGO) FOR IMMEDIATE RELEASE CONTACT: AMEDISYS, INC. GREGORY H. BROWNE, CFO (225) 292-2031 GBROWNE@AMEDISYS.COM INVESTORS: NOONAN RUSSO PRESENCE EURO RSCG JOHN CAPODANNO (212) 845-4258 news@nrp-euro.com BRIAN RITCHIE (212) 845-4269 news@nrp-euro.com AMEDISYS REPORTS FOURTH QUARTER AND 2002 YEAR END RESULTS COMPANY INCREASES GUIDANCE FOR 2003 AMEDISYS TO HOST CONFERENCE CALL TODAY AT 10:00 AM EST BATON ROUGE, Louisiana (March 13, 2003) - Amedisys, Inc. (NasdaqNM: "AMED" or "the Company"), one of America's leading home health nursing companies, today reported its financial results for the fourth quarter and the year ended December 31, 2002. For the year ended December 31, 2002 the Company reported net income of $752,000, or $0.08 per diluted share, on record revenues of $129.4 million. In the previous year, Amedisys earned $5.4 million, or $0.68 per share, on revenues of $110.2 million. A net loss of $6.1 million, or $0.65 per diluted share, calculated on 9.5 million shares was recorded in the fourth quarter of 2002, compared with net income of $2.2 million, or $0.26 per diluted share, calculated on 8.2 million shares, in the quarter ended December 31, 2001. The Company reported a pretax loss of $9.7 million for the quarter ended December 31, 2002, after recording a previously announced reserve related to the uncertainty of collecting $7.1 million from National Century Financial Enterprises ("NCFE"), together with legal costs of $250,000. These results compared with pretax income of $2.5 million in the prior-year quarter. The Company reported an Operating Loss of $1.9 million for the quarter on revenues of $31.7 million. These results compared with Operating Income of $3.0 million on revenues of $31.1 million in the fourth quarter of 2001. The Operating Loss for the fourth quarter of 2002 includes previously announced expenses for Medicare cost reserves ($1.0 million, and reflected as a reduction in Revenues), increase in reserve for doubtful accounts ($0.6 million) and restructuring charges ($1.6 million). The Company also reserved an additional $300,000 in the recently completed December quarter relating to the anticipated settlement of the OIG examination of one agency for the years 1994 through 1997, and $275,000 for workers compensation expense relating to the year ended December 31, 2000. The above results also include the full impact in the fourth quarter of the Medicare reimbursement reduction effective October 1, 2002. For ease of analysis, the Company has provided a schedule attached to this press release, which outlines the impact of the above described write-offs and charges on the Statement of Operations for both the fourth quarter, and fiscal year, ended December 31, 2002. The weighted average number of diluted shares outstanding approximated 9.0 million in 2002 and 8.0 million in 2001. "We are beginning to realize significant benefits from the restructuring which our Company has undertaken in response to the current reimbursement climate, including the anticipated elimination of the rural surcharge scheduled for April 1, 2003", noted William F. Borne, Chief Executive Officer of the Company. "Although net income was significantly impacted by the various items described above, particularly those related to the NCFE situation, Amedisys was able to reduce operating costs at all levels within the Company during the most recent quarter. A gross margin of 53.5 percent was achieved in the fourth quarter, despite being lowered by 1.4 percent due to the increase in cost report reserves accounted for as a reduction in revenues." "Same store Medicare admissions increased by a healthy 11 percent in the fourth quarter, and indications for the current quarter suggest that same store Medicare admissions are likely to grow between 5 percent and 10 percent", continued Borne. "We believe this is due to our realigned and more effective sales-force." "Our overall financial position looks solid, despite the impact on our balance sheet of the adjustments, with cash & cash equivalents of $4.9 million at the end of December. I am pleased that during 2002, the Company paid down over $16.4 million of net debt out of a combination of ongoing operating profitability, improved collections and the proceeds from a private placement completed in April, 2002." "We enter 2003 confident that Amedisys is well-positioned for an earnings resurgence. Based on currently available information we are increasing our earnings guidance for 2003 to between $0.50 and $0.60 cents per share" concluded Borne. THE COMPANY WILL PROVIDE FURTHER INFORMATION TODAY ON THESE RESULTS DURING A TELECONFERENCE CALL THAT IS SCHEDULED FOR 10:00 A.M. EST. TO ACCESS THIS CALL, PLEASE DIAL 1-888-896-0863 (DOMESTIC) OR 1-973-582-2703 (INTERNATIONAL). A REPLAY OF THE CONFERENCE CALL WILL BE AVAILABLE UNTIL MARCH 15, 2003, BY DIALING 1-877-519-4471 (DOMESTIC) OR 1-973-341-3080 (INTERNATIONAL). THE ACCESS CODE IS 3762151 FOR THE REPLAY. Amedisys, Inc., a leading provider of home health nursing services, is headquartered in Baton Rouge, Louisiana. Its common stock trades on The Nasdaq Stock 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 AMEDISYS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED, DOLLAR AMOUNTS IN 000'S, EXCEPT PER SHARE DATA)
For the three months ended For the twelve months ended December 31, December 31, 2002 2001 2002 2001 ---------- ---------- ---------- ---------- Income: Service Revenue $ 31,654 $ 31,132 $ 129,424 $ 110,174 Cost of Service Revenue 14,723 14,069 58,244 49,046 ---------- ---------- ---------- ---------- Gross Margin 16,931 17,063 71,180 61,128 ---------- ---------- ---------- ---------- General and administrative expenses: Salaries and benefits 10,154 8,543 38,650 30,495 Other 7,017 5,550 24,410 23,170 Restructuring Charge 1,640 -- 1,640 -- ---------- ---------- ---------- ---------- Total general and administrative expenses 18,811 14,093 64,700 53,665 ---------- ---------- ---------- ---------- Operating Income (Loss) (1,880) 2,970 6,480 7,463 Other income (expense): Interest income 19 25 97 328 Interest expense (420) (569) (1,874) (2,785) Miscellaneous (7,386) 121 (7,236) 290 ---------- ---------- ---------- ---------- Total other expense, net (7,787) (423) (9,013) (2,167) ---------- ---------- ---------- ---------- Income before income taxes and discontinued (9,667) 2,547 (2,533) 5,296 operations Income tax expense (benefit) (3,538) 220 (3,285) 220 Income from discontinued operations (6,129) 2,327 752 5,076 Discontinued operations: Gain (Loss) from discontinued operations, net of income taxes -- 19 -- (566) Gain (Loss) on sale of discontinued operations, net of income taxes -- (180) -- 876 ---------- ---------- ---------- ---------- Net Income (Loss) $ (6,129) $ 2,166 $ 752 $ 5,386 ========== ========== ========== ========== Diluted weighted average common shares outstanding 9,492 8,179 9,007 7,980 Diluted income per common share: Income from continuing operations $ (0.65) $ 0.28 $ 0.08 $ 0.64 Loss from discontinued operations, net of income taxes -- -- -- (0.07) Gain on sale of discontinued operations, net of income Taxes -- (0.02) -- 0.11 ---------- ---------- ---------- ---------- Net Income (Loss) $ (0.65) $ 0.26 $ 0.08 $ 0.68 ========== ========== ========== ==========
THIS RECONCILIATION IS FOR ANALYSIS PURPOSES ONLY. AMEDISYS, INC. AND SUBSIDIARIES RECONCILIATION OF FOURTH QUARTER AND FISCAL 2002 FINANCIAL RESULTS (UNAUDITED, DOLLAR AMOUNTS IN 000'S, EXCEPT PER SHARE DATA)
Fiscal 2002 Q4 prior to prior to Impact of Impact of Impact of Impact of Specified Specified Fiscal Specified Specified Q4 Items Items 2002 Items Items Notes --------- ---------- ----------- ---------- ---------- ----------- ------ Income: Service Revenue 31,654 1,001 32,655 129,424 1,001 130,425 1 Cost of Service Revenue 14,723 14,723 58,244 58,244 --------- ---------- ---------- ---------- ---------- ---------- ------ Gross Margin 16,931 1,001 17,932 71,180 1,001 72,181 --------- ---------- ---------- ---------- ---------- ---------- ------ General and administrative expenses: Salaries and benefits 10,154 (275) 9,879 38,650 (275) 38,375 2 Other 7,017 (900) 6,117 24,410 (900) 23,510 3,4 Restructuring Charge 1,640 (1,640) -- 1,640 (1,640) -- 5 --------- ---------- ---------- ---------- ---------- ---------- ------ Total general and administrative Expenses 18,811 (2,815) 15,996 64,700 (2,815) 61,885 --------- ---------- ---------- ---------- ---------- ---------- ------ Operating Income (Loss) (1,880) 3,816 1,936 6,480 3,816 10,296 Other income (expense): Interest income 19 19 97 97 Interest expense (420) (420) (1,874) (1,874) Miscellaneous (7,386) 7,349 (37) (7,236) 7,349 113 6 --------- ---------- ---------- ---------- ---------- ---------- ------ Total other expense, net (7,787) 7,349 (438) (9,013) 7,349 (1,664) --------- ---------- ---------- ---------- ---------- ---------- ------ Income before income taxes (9,667) 11,165 1,498 (2,533) 11,165 8,632 Income tax expense (benefit) (3,538) 4,131 593 (3,285) 4,131 846 --------- ---------- ---------- ---------- ---------- ---------- Net Income (Loss) (6,129) 7,034 905 752 7,034 7,786 ========= ========== ========== ========== ========== ========== ====== Diluted weighted average common shares outstanding 9,492 9,492 9,492 9,007 9,007 9,007 Diluted income per common share: Net income (Loss) (0.65) 0.75 0.10 0.08 0.78 0.86 ========= ========== ========== ========== ========== ========== ======
---------- Notes: 1 Additional Cost Report Reserve for FY 1997 2 Additional Workers Compensation Expense for FY 2000 3 Increase to Bad Debt Reserve for managed care contracts 4 Increase to Reserve for settlement of OIG Investigation 5 Restructuring Charge (severance & lease abandonment) 6 Writeoff of NCFE receivable AMEDISYS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2002 AND 2001 (UNAUDITED, DOLLAR AMOUNTS IN 000'S)
December 31, 2002 December 31, 2001 ----------------- ----------------- CURRENT ASSETS: Cash and Cash Equivalents $ 4,861 $ 3,515 Patient Accounts Receivable, Net of Allowance for Doubtful Accounts of $1,865 in December 2002 and $3,125 in December 2001 13,467 23,682 Prepaid Expenses 1,600 244 Deferred Income Taxes 1,803 -- Inventory and Other Current Assets 857 822 --------------- --------------- Total Current Assets 22,588 28,263 Property and Equipment, net 8,257 10,290 Deferred Income Taxes 1,711 -- Other Assets, net 25,768 22,301 --------------- --------------- Total Assets $ 58,324 $ 60,854 =============== =============== CURRENT LIABILITIES: Accounts Payable $ 2,495 $ 2,440 Accrued Expenses: Payroll and Payroll Taxes 6,504 6,798 Insurance 2,171 1,881 Income Taxes 297 930 Legal Settlements 1,887 1,704 Other 2,439 2,605 Notes Payable -- 9,305 Current Portion of Long-term Debt 3,903 5,355 Current Portion of Obligations under Capital Leases 2,476 2,391 Current Portion of Medicare Liabilities 8,948 13,214 --------------- --------------- Total Current Liabilities 31,120 46,623 Long-term Debt 4,474 5,591 Obligations under Capital Leases 1,042 3,208 Long-term Medicare Liabilities 3,898 958 Other Long-term Liabilities 827 1,099 --------------- --------------- Total Liabilities 41,361 57,479 Minority Interest in Consolidated Subsidiaries -- 66 STOCKHOLDER'S EQUITY: Common Stock (9,163,809 Shares in December 2002 and 7,178,152 Shares in December 2001) 9 7 Additional Paid-in Capital 29,439 16,539 Treasury Stock (4,167 Shares of Common Stock in December 2002 and December 2001) (25) (25) Retained Earnings (Deficit) (12,460) (13,212) --------------- --------------- Total Stockholder's Equity 16,963 3,309 --------------- --------------- Total Liabilities and Stockholder's Equity $ 58,324 $ 60,854 =============== ===============