EX-99.1 2 dex991.htm PRESS RELEASE DATED MAY 1, 2007 Press release dated May 1, 2007

Exhibit 99.1

LOGO

 

Contacts:    Amedisys, Inc.   
   Thomas J. Dolan    Dale E. Redman
   Senior Vice President – Finance    Interim Chief Financial Officer
   (225) 292-2031    (225) 292-2031
   tdolan@amedisys.com    dredman@amedisys.com

AMEDISYS REPORTS RECORD FIRST QUARTER REVENUES AND EARNINGS

COMPANY TO HOST CONFERENCE CALL

TODAY AT 10:00 AM ET

BATON ROUGE, Louisiana (May 1, 2007) – Amedisys, Inc. (NASDAQ: “AMED”, “Amedisys” or “the Company”), one of America’s leading home health nursing companies, today reported its financial results for the first quarter ended March 31, 2007:

 

   

Net service revenues were $153.6 million, up 21% compared to $127.2 million reported for the first quarter of 2006.

 

   

Net income was $13.3 million, or $0.51 per diluted share, compared to $7.3 million, or $0.34 per diluted share, for the first quarter of 2006.

 

   

Diluted weighted average number of shares outstanding approximated 26.0 million compared to 21.7 million in the first quarter of 2006.

“Once again, we have demonstrated our ability to maintain our position as the nation’s leading market provider in the home health services industry as we again enjoyed record quarterly revenues and record net income,” said William F. Borne, Chief Executive Officer of Amedisys. “Our diluted earnings per share increased 50% from the first quarter of 2006 to the first quarter of 2007. Further, we continued to grow our operations through the opening of 13 new agencies and the acquisition of three agencies during the first quarter of 2007. With a strong balance sheet and positive results of operations, we are well positioned to continue to take advantage of future potential acquisitions that meet our corporate strategy and to initiate operations in markets that we feel have the most potential to add additional returns for the Company and our stockholders.”

The following table provides some key financial and statistical information related to the first quarter ended March 31, 2007 as compared to the first quarter ended March 31, 2006:

 

     For the three-month periods ended
March 31,
 
     2007     2006  

General

    

Number of home health agencies

     273       229  

Number of hospice agencies

     17       12  

Days revenue outstanding (1)

     46.3       55.0  

Net cash provided by (used in) operating activities (2)

   $ 35,041     $ (6,499 )

Net increase (decrease) in cash and cash equivalents

   $ 23,262     $ (7,755 )

Internal growth rate (3)

     15 %     19 %

Total visits (4)

     972,175       812,544  

Home Health

    

Medicare admissions (5)

     29,300       25,827  

Completed episodes (6)

     47,942       39,412  

Revenue per episode (7)

   $ 2,644     $ 2,649  

Medicare visits per episode (8)

     16.3       16.9  

 

(1) Due to the Company’s significant acquisitions and its internal growth, the calculation for days revenue outstanding is derived by dividing the ending gross accounts receivable, net of contractual allowances, at March 31, 2007 and March 31, 2006 by the average daily net patient revenues for the three-month periods ended March 31, 2007 and March 31, 2006, respectively.


(2) Cash flow from operations increased $41.5 million due primarily to a $38.5 million increase in our working capital and a $6.0 million increase in net income. The working capital increase was primarily the result of a $18.6 million decrease in payments made for our outstanding accounts payable, a $6.5 million increase in accrued expenses and a $5.9 million increase in the collections of our outstanding patient accounts receivable. Payments made for outstanding accounts payable decreased significantly from 2006, due primarily to a $18.8 million payment made from 2005 Hurricane Katrina related payroll tax deferrals paid in 2006.

 

(3) Internal growth rate is calculated as the percentage increase in total episodic-based admissions of base and start-up agencies in the current period, as compared to admissions of total episodic-based admissions from the prior period. Episodic-based admissions are defined as admissions of payors that reimburse on an episodic-basis, which include Medicare and other insurance carriers, including HMO Advantage programs.

 

(4) Total visits are the number of times during the period that our registered nurses, licensed practical nurses, physical therapists, speech therapists, occupational therapists, medical social workers and home health aides visit all eligible patients in their residence.

 

(5) Medicare admissions are defined as the number of patients admitted to our agencies during the period for the first 60-day episode of care where payment for services by Medicare is anticipated.

 

(6) Completed episodes are the number of Medicare patients that have either reached the end of their 60-day eligibility period or terminated their service before the 60-day eligibility period has lapsed.

 

(7) Revenue per episode is the average revenue earned for each completed episode of care.

 

(8) Medicare visits per episode is calculated by dividing the total number of Medicare visits on completed episodes in the period by the total number of Medicare episodes completed in the period.

For 2007, Amedisys confirms its previous guidance that it expects net revenues will be in the range of $625 million to $650 million and diluted earnings per share, based on the Company’s estimate of 26.5 million shares outstanding will be in the range of $2.05 to $2.15. This guidance includes approximately 40 home health and 4 to 5 hospice start-ups but does not include any acquisitions. Capital expenditures are expected to be about two percent of revenue, plus approximately $5.2 million related to the deployment of our Point of Care system and approximately $3.2 million on our corporate headquarters.

On April 30, 2007, we issued a Form 8-K, which discussed the recent Notice of Proposed Rulemaking regarding the Home Health Prospective Payment System Refinement and Rate Update for Calendar Year 2008 by the Centers for Medicare and Medicaid Services.

To participate in the conference call, please dial 888-873-8496 (Domestic) or 973-935-8513 (International) a few minutes before 10:00 a.m. ET on Tuesday, May 1, 2007. A replay of the conference call will be available from 12:00 p.m. ET on May 1, 2007 until 12:00 p.m. ET on May 8, 2007. The replay dial in number is 877-519-4471 (Domestic) or 973-341-3080 (International). The replay pin number is 8718170.

The call will also be available on the Internet live and for seven days thereafter at the following:

http://www.videonewswire.com/event.asp?id=39373

Amedisys, Inc. is headquartered in Baton Rouge, Louisiana. Its common stock trades on the NASDAQ Global Select 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 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 the Company can be found at:

www.amedisys.com


AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

 

    

March 31,
2007

  (unaudited)  

    December 31,
2006
 
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 107,483     $ 84,221  

Restricted cash

     5,921       4,797  

Patient accounts receivable, net

     67,930       74,929  

Prepaid expenses

     5,091       4,133  

Other current assets

     3,887       11,125  
                

Total current assets

     190,312       179,205  

Property and equipment, net

     55,401       52,960  

Goodwill

     219,061       213,032  

Intangible assets, net

     12,741       12,733  

Other assets, net

     5,600       5,826  
                

Total assets

   $ 483,115     $ 463,756  
                
LIABILITIES AND STOCKHOLDERS’ EQUITY     

Current liabilities:

    

Accounts payable

   $ 10,916     $ 14,339  

Accrued expenses

     53,833       46,587  

Obligations due Medicare

     5,927       6,139  

Current portion of long-term obligations

     3,779       3,223  

Current portion of deferred income taxes

     8,280       11,630  
                

Total current liabilities

     82,735       81,918  

Long-term obligations, less current portions

     2,555       2,114  

Deferred income taxes

     12,057       10,781  

Other long-term obligations

     5,785       4,936  
                

Total liabilities

     103,132       99,749  

Stockholders’ equity:

    

Common stock, $0.001 par value, 30,000,000 shares authorized; 25,992,248 and 25,902,210 shares issued at March 31, 2007 and December 31, 2006, respectively, and 25,888,084 and 25,798,723 shares outstanding at March 31, 2007 and December 31, 2006, respectively

     26       26  

Additional paid-in capital

     282,638       279,553  

Treasury stock at cost, 104,164 and 103,487 shares of common stock held at March 31, 2007 and December 31, 2006, respectively

     (403 )     (379 )

Retained earnings

     97,722       84,807  
                

Total stockholders’ equity

     379,983       364,007  
                

Total liabilities and stockholders’ equity

   $ 483,115     $ 463,756  
                


AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Amounts in thousands, except per share data)

(Unaudited)

 

     For the three-month periods ended
March 31,
 
     2007     2006  

Net service revenue

   $ 153,581     $ 127,187  

Cost of service, excluding depreciation and amortization

     67,034       55,770  

General and administrative expenses:

    

Salaries and benefits

     37,277       32,145  

Non-cash compensation

     731       596  

Other

     25,106       23,583  

Depreciation and amortization

     2,741       2,373  
                

Operating expenses

     132,889       114,467  
                

Operating income

     20,692       12,720  

Other income (expense):

    

Interest income

     956       206  

Interest expense

     (93 )     (1,124 )

Miscellaneous, net

     155       100  
                

Total other income (expense)

     1,018       (818 )
                

Income before income taxes

     21,710       11,902  

Income tax expense

     8,445       4,618  
                

Net income

   $ 13,265     $ 7,284  
                

Net income per common share:

    

Basic

   $ 0.52     $ 0.34  
                

Diluted

   $ 0.51     $ 0.34  
                

Weighted average shares outstanding:

    

Basic

     25,634       21,203  
                

Diluted

     26,041       21,711  
                


AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

 

     For the three-month periods ended
March 31,
 
     2007     2006  

Cash Flows from Operating Activities:

    

Net income

   $ 13,265     $ 7,284  

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

    

Depreciation and amortization

     2,741       2,373  

Provision for bad debts

     2,552       2,009  

Non-cash compensation expense

     731       596  

401(k) employer match expense

     493       1,471  

Loss (gain) on disposal of property and equipment

     48       (9 )

Deferred income taxes

     (2,953 )     —    

Amortization of deferred debt issuance costs

     —         121  

Changes in assets and liabilities, net of impact of acquisitions:

    

Decrease (increase) in patient accounts receivable

     4,599       (1,272 )

Decrease (increase) in other current assets

     6,280       (365 )

Decrease (increase) in other assets

     226       (891 )

(Decrease) in accounts payable

     (3,362 )     (22,001 )

Increase in accrued expenses

     10,690       4,191  

(Decrease) in other long-term obligations

     (58 )     —    

(Decrease) in obligations due Medicare

     (211 )     (6 )
                

Net cash provided by (used in) operating activities

     35,041       (6,499 )

Cash Flows from Investing Activities:

    

Proceeds from sales and maturities of short-term investments

     34,200       —    

Proceeds from the sale of property and equipment

     16       49  

Deposits into restricted cash

     (1,124 )     —    

Acquisitions of businesses, net of cash acquired

     (4,396 )     (4,091 )

Purchases of property and equipment

     (7,232 )     (4,676 )

Purchases of short-term investments

     (34,200 )     —    
                

Net cash (used in) investing activities

     (12,736 )     (8,718 )

Cash Flows from Financing Activities:

    

Proceeds from issuance of stock upon exercise of stock options

     1,010       458  

Proceeds from issuance of stock to employee stock purchase plan

     599       295  

Tax benefit from stock option exercises

     251       232  

Proceeds from short-term revolving line of credit

     —         10,000  

Principal payments of long-term obligations

     (903 )     (3,523 )
                

Net cash provided by financing activities

     957       7,462  

Net increase (decrease) in cash and cash equivalents

     23,262       (7,755 )

Cash and cash equivalents at beginning of period

     84,221       17,231  
                

Cash and cash equivalents at end of period

   $ 107,483     $ 9,476  
                

Supplemental Disclosures of Cash Flow Information:

    

Cash paid for interest

   $ 91     $ 1,051  
                

Cash paid for 2005 payroll taxes under Hurricane Relief Act extended deadlines

   $ —       $ 18,773  
                

Cash paid for income taxes, net of refunds received

   $ 777     $ 874  
                

Supplemental Disclosures of Non-Cash Financing and Investing Activities:

    

Notes payable issued for acquisitions

   $ 1,900     $ 1,350