EX-99.1 2 dex991.htm INVESTOR RELATIONS SLIDE SHOW Investor Relations Slide Show
Amedisys, Inc.
www.amedisys.com
NASDAQ: AMED
September 2007
Exhibit 99.1

1
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
from
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.
Forward Looking Statements

2
Investment Highlights
•
Large, growing and fragmented industry
•
Focus on home nursing and related services to Medicare population
•
Strong internal growth and cash flow with low recurring cap ex
•
Proven operating model supported by sophisticated technology
system
•
Demonstrated ability to identify and integrate acquisitions
•
Substantial liquidity and balance sheet capacity to fund external
growth
•
Extensive delivery platform ideally positioned for Medicare care
management initiatives
•
Experienced management team

3
Management Team
•
William F. Borne -
Chairman and Chief Executive Officer
-
CEO since founding the Company in 1982
-
Registered nurse, extensive hospital administrative and clinical
experience
•
Larry R. Graham -
President and Chief Operating Officer
-
Joined Amedisys in 1996; COO since 1999; President since 2004
-
General Health Systems
-
Arthur Andersen
•
Dale
E.
Redman,
CPA
–Chief
Financial
Officer
-
Joined Amedisys in February 2007
-
CFO of United Companies
-
Ernst & Young

4
Corporate Overview
•
Leading provider of home nursing services
•
313
1
locations primarily in United States
•
Services include skilled nursing and therapy
•
Medicare and other episodic based revenue accounts for
approximately 94%
2
of net service revenue
•
Hospice
care
accounts
for
approximately
6%
2
of
net
service
revenue
1)
Both home health and hospice; as of June 30, 2007
2)
For the six-month period ended June 30, 2007

5
Our Locations
1
-
296 home nursing
locations (shown)
-
17 hospice locations
1) As of
June 30, 2007
•
Largest home nursing provider in the Southern and
Southeastern United States

6
Our Strategy
•
Focus on Medicare-eligible patients
•
Develop and deploy specialized nursing programs
•
Expand care management capabilities
•
Prioritize internal growth
•
Select, acquire and integrate quality home care agencies
•
Leverage cost-efficient operating platform

7
•
Home health
care is a $62.8
billion
industry
•
Home nursing
is
the
largest
segment
in the
home health
industry
•
Medicare
spending for
home nursing
totaled $13.1
billion
in 2005
Home Health Care Spending
Home Health Industry Expenditures ($ billions)
Medicare
Home Nursing
$13.1
Home Nursing
(Commercial,
Medicaid &
Other)
$23.3
Home Nursing
$46.1
Infusion
Therapy
$5.5
Durable Medical
Equipment
$2.8
Respiratory
Therapy
$8.4
Hospice $9.7
Source:  Company Reports, CMS and CIBC World Markets Corp. estimates for 2005

8
Home Nursing Market
•
Industry is highly fragmented
•
8,500 Medicare-certified nursing agencies
•
Most are single-site, small local or regional providers:
-
Independently-owned agencies
-
Visiting nurse associations
-
Facility and hospital-based agencies
•
Publicly-owned providers account for less than 7% of the
home nursing market

9
Industry Growth Drivers
•
Trend from inpatient to home-based care:
-
Patient preference
-
Payor incentives
-
Technology advancements
•
Demographics –
aging population
•
Increased prevalence of chronic and co-morbid conditions

10
Internal Growth
-
Overall industry growth
-
Expanded and more effective sales force
-
Comprehensive range of clinical programs
-
Enhanced referral source education efforts
-
Increased focus on start-ups
•
Strong internal growth in episodic-based admissions
-
Approximately 13% for Q2 2007 and 14% year-to-date
•
Internal growth driven by:

11
Start-Up Strategy
•
Start-ups typically generate $1.5 -
$2.0 million in run-rate
revenue by the end of their second year of operations
•
~ 18 months to recoup the $250,000 -
$350,000 investment
•
22 home health start-ups completed through June 30, 2007
Yearly Start-Ups
40
25
13
8
36
0
10
20
30
40
2003
2004
2005
2006
2007
22
* Reported numbers are for home health start-ups
Completed
Projected

12
Acquisition Strategy
Disciplined approach
•
Acquisition criteria:
-
Defined pricing objectives
-
Targeted geographic profile
-
Compatible payor mix
-
Consistent clinical metrics
-
Expandable referral base
-
Opportunities for internal growth
•
Target hospital-based and multi-site agencies
•
Eleven acquisitions over the last twelve months ended 6/30/2007;
23
agencies representing $49 million in revenues

13
Investments in Technology
•
Strategic advantages from technology
•
Standardized processes:
-
Automated review of assessment forms
-
Automatic scheduling
-
Web-based HR and payroll system
•
Centralized management of clinical oversight/utilization:
-
Real-time episode analysis
-
Daily/weekly review of quality indicators
-
Executive information system
•
Point of care roll-out currently underway:
-
Rolled out 235 sites as of June 30, 2007; planned to be fully deployed
by year-end
-
Expect approximately $1.5 million in quarterly savings when fully
deployed
-
Initial cap ex investment of $9 -
$10 million

14
Comprehensive Compliance Program
Local Level
•
Clinical nurse review of
assessments
•
Standardized care plans
•
Physician
review/approval
•
Weekly case conferences
•
Monthly audits
•
End of episode case
review
•
Point-of-care system
enhances clinical
documentation accuracy
with real-time
assessment input
Regional Level
Corporate Level
•
Unannounced
compliance & billing
audits
•
Regional directors
monitor compliance
status and resolve
errors
•
Real-time monitoring
capability of local level
activity via point-of-
care system
•
Semi-annual
clinical/compliance
reviews
•
Compliance review of
metric variances
•
Compliance manager
site visits
•
Compliance training for
all employees
•
Compliance concerns
hotline
•
Annual Sarbanes-Oxley
audit

15
Medicare Reimbursement
•
Implemented in October 2000
-
Base payment for 60-day episode of care
-
Adjusted for patient acuity and market factors
•
CMS issued reimbursement changes on August 22, 2007
-
Expands HHRG from 80 to 153
-
Effective date of January 1, 2008
-
More integrated reimbursement for therapy
•
We are analyzing the reimbursement changes and planning for its
implementation
-
Multi component changes requiring complex modeling and testing
-
Will lead to operational adjustments and system programming changes

16
Financial Highlights
•
Increasing revenue
•
Cash
flow/low cap ex requirements
•
Consistent EPS growth
•
Strong balance sheet to fund future growth

17
EBITDA
is
defined
as
net
income
before
provision
for
income
taxes,
net
interest
expense,
and
depreciation
and
amortization.
EBITDA
should
not
be
considered
as
an
alternative
to,
or
more
meaningful
than,
income
before
income
taxes,
cash
flow
from
operating
activities,
or
other
traditional
indicators
of
operating
performance.
This
calculation
of
EBITDA
may
not
be
comparable
to
a
similarly
titled
measure
reported
by
other
companies,
since
not
all
companies
calculate
this
non-GAAP
measure
in
the
same
manner.
($ millions, except per share data)
Summary Financial Results
2005
2006
2Q06
Net revenue
$381.6
$541.1
$132.9
Period-over-period growth
68.0%
41.8%
66.0%
Gross margin
218.5
305.7
76.2
Margin
57.3%
56.5%
57.4%
Operating income
50.1
65.7
15.7
Margin
13.1%
12.1%
11.8%
EBITDA
57.2
75.7
18.2
Margin
15.0%
14.0%
13.7%
Fully-diluted EPS
$1.41
$1.75
1
$0.42
Period-over-period growth
23.7%
24.1%
10.5%
2Q07
$169.5
27.5%
94.8
55.9%
24.0
14.2%
15.5%
$0.57
35.7%
1)
Adjusted to exclude $0.03 charge for write-off of deferred
financing fees.
26.3
Net Income
38.3
30.1
9.1
14.9

18
Summary Performance Results
2005
2006
2Q06
Agencies
1
221
275
247
Period-over-period growth
24.4%
Completed Episodes
120,987
172,930
42,621
Period-over-period growth
42.9%
Episodic-Based Admissions
81,464
108,140
26,364
Period-over-period growth
32.7%
Revenue per Episode
$2,567
$2,634
$2,652
Period-over-period growth
2.6%
Total Visits
2,364,887
3,437,881
842,368
Period-over-period growth
45.4%
2Q07
313
26.7%
51,219
20.2%
31,376
19.0%
0.7%
1,049,008
24.5%
$2,671
DSO
48.9
46.8
62.3
52.9
1)
Inclusive of home health and hospice locations

19
Summary Balance Sheet
($ in millions)
Dec. 31, 2006
June 30, 2007
Assets
Cash
(1)
Accounts Receivable, Net
Property, Plant and Equipment
Goodwill
Other
Total Assets
Liabilities and Stockholder Equity
Debt
All Other Liabilities
Stockholders’
Equity
Total
Liabilities
and
Stockholders’
Equity
$   97.3
75.0
66.9
249.6
29.9
$  518.7
$   89.0
74.9
53.0
213.0
33.9
$ 463.8
1)
Includes restricted cash of $4.8 million and $5.9 million as of December 31, 2006 and June 30, 2007, respectively.
$5.3 
94.5
364.0
$ 463.8
$15.3 
104.0
399.4
$  518.7

20
Guidance
Calendar
Year
2007
1
Net revenue:
$650 -
$675 million
EPS:
$2.10 -
$2.20
Diluted shares:
26.4 million
1)
Provided as of the date of our form 8-K filed with the Securities and Exchange Commission on July 31, 2007

21
Investment Highlights
•
Large, growing and fragmented industry
•
Focus on home nursing and related services to Medicare population
•
Strong internal growth and cash flow with low recurring cap ex
•
Proven operating model supported by sophisticated technology
system
•
Demonstrated ability to identify and integrate acquisitions
•
Substantial liquidity and balance sheet capacity to fund external
growth
•
Extensive delivery platform ideally positioned for Medicare disease
management initiatives and payor diversification
•
Experienced management team

22
Contact Information
•
Thomas J. Dolan
•
SVP of Finance
•
Amedisys, Inc.
•
5959 S. Sherwood Forest
Boulevard
•
Baton Rouge, LA 70816
•
Office –
225.292.2031
•
Fax –
225.295.9653
•
tdolan@amedisys.com
•
Dale Redman
•
Chief Financial Officer
•
Amedisys, Inc.
•
5959 S. Sherwood Forest
Boulevard
•
Baton Rouge, LA 70816
•
Office –
225.292.2031
•
Fax –
225.295.9653
•
dredman@amedisys.com