EX-99.1 2 dex991.htm PRESS RELEASE Press release

Exhibit 99.1

LOGO

 

Contacts:

  

Amedisys, Inc.

  

Kevin LeBlanc

  

Director of Investor Relations

  

(225) 292-2031

  

kleblanc@amedisys.com

AMEDISYS REPORTS FOURTH QUARTER REVENUE AND EARNINGS

AND ISSUES 2010 GUIDANCE

AMEDISYS TO HOST CONFERENCE CALL

TODAY AT 10:00 A.M. ET

BATON ROUGE, Louisiana (February 23, 2010) — Amedisys, Inc. (NASDAQ: AMED), one of America’s leading home health nursing companies, today reported its financial results for the three months and year ended December 31, 2009. We posted record financial performance with net service revenue and net income attributable to Amedisys, Inc., increasing 19.2% and 43.5%, respectively, over the three month period ended December 31, 2008.

Three-Month Periods Ended December 31, 2009 and 2008

 

   

Net service revenue increased $65.4 million or 19.2% to $405.5 million compared to $340.1 million in 2008, with $52.7 million of the increase related to growth through base/start-up agencies.

 

   

Net income attributable to Amedisys, Inc. increased $11.5 million or 43.5% to $37.8 million compared to $26.3 million in 2008

 

   

Diluted earnings per share increased 39.2% to $1.35 compared to $0.97 per diluted share in 2008. The weighted average number of diluted shares outstanding increased to approximately 28.1 million compared to 27.1 million in 2008.

 

   

Earnings before interest, taxes, depreciation and amortization (“EBITDA”) increased 38.8% to $71.3 million compared to $51.4 million in 2008.

Years Ended December 31, 2009 and 2008

 

   

Net service revenue increased $326.1 million or 27.5% to $1.5 billion compared to $1.2 billion in 2008, with $206.0 million of the increase related to growth through base/start-up agencies.

 

   

Net income attributable to Amedisys, Inc. increased $49.1 million or 56.7% to $135.8 million compared to $86.7 million in 2008

 

   

Diluted earnings per share increased 51.9% to $4.89 compared to $3.22 per diluted share in 2008. The weighted average number of diluted shares outstanding increased to approximately 27.7 million compared to 26.9 million in 2008.

 

   

EBITDA increased 47.5% to $261.8 million compared to $177.4 million in 2008.

“We had outstanding results for the fourth quarter and full year ending 2009. This marks the seventh consecutive year in which we have increased our earnings per share in excess of 20%,” stated William F. Borne, Chief Executive Officer of Amedisys, Inc. “During the past quarter we made tremendous progress in positioning Amedisys for future growth by hiring strong executive leadership, strengthening clinical resources in the field, and continuing to invest in technology.”

2010 Guidance

 

   

Net service revenue is anticipated to be in the range of $1.700 billion to $1.750 billion, excluding the effects of future acquisitions, if any are made.

 

   

Diluted earnings per share is expected to be in the range of $5.40 to $5.60 based on an estimated 28.8 million shares outstanding, also excluding the effects of future acquisitions, if any are made.


We urge caution in considering the current trends and 2010 guidance disclosed in this press release. The home health and hospice industry is highly competitive and subject to intensive regulations, and trends and guidance are subject to numerous factors, risks, and uncertainties, some of which are referenced in the cautionary language below and others that are described more fully in our reports filed with the Securities and Exchange Commission (“SEC”) including our Annual Report on Form 10-K for the fiscal year ended December 31, 2008, and subsequent Quarterly Reports on Form 10-Q, and current reports on Form 8-K which can be found on the SEC’s internet website, http://www.sec.gov, and our internet website, http://www.amedisys.com. We disclaim any obligations to update disclosed information on trends or guidance.

Earnings Call and Webcast Information

To participate in the conference call, please dial (888) 204-4520 (Toll free) or (913) 312-0937 (Toll) a few minutes before 10:00 a.m. ET on Tuesday, February 23, 2010. A replay of the conference call will be available beginning at 1:00 p.m. ET on February 23, 2010 through March 2, 2010. The replay dial in number is (888) 203-1112 (Toll free) or (719) 457-0820 (Toll). The replay pin number is 6461385.

The call will also be available through our website and for seven days thereafter at the following web address: http://www.amedisys.com/investors

We are headquartered in Baton Rouge, Louisiana. Our common stock trades on the NASDAQ Global Select Market under the symbol “AMED.”

Additional information

Our company website address is www.amedisys.com, which we use as a channel of distribution for important company information. Important information, including press releases, analyst presentations and financial information regarding our company, is routinely posted on and accessible on the “Investor Relations” subpage of our website, which is accessible by clicking on the tab labeled “Investors” on our website home page. We also use our website to expedite public access to time-critical information regarding our company in advance of or in lieu of distributing a press release or a filing with the SEC disclosing the same information. Therefore, investors should look to the “Investor Relations” subpage of our website for important and time-critical information. Visitors to our website can also register to receive automatic e-mail and other notifications alerting them when new information is made available on the “Investor Relations” subpage of our website.

Forward-Looking Statements

When included in this press release, words like “believes,” “belief,” “expects,” “plans,” “anticipates,” “intends,” “projects,” “estimates,” “may,” “might,” “would,” “should” and similar expressions are intended to identify forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a variety of risks and uncertainties that could cause actual results to differ materially from those described therein. These risks and uncertainties include, but are not limited to the following: changes in Medicare and other medical payment levels, our ability to open agencies, acquire additional agencies and integrate and operate these agencies effectively, changes in or our failure to comply with existing Federal and State laws or regulations or the inability to comply with new government regulations on a timely basis, competition in the home health industry, changes in the case mix of patients and payment methodologies, changes in estimates and judgments associated with critical accounting policies, our ability to maintain or establish new patient referral sources, our ability to attract and retain qualified personnel, changes in payments and covered services due to the economic downturn and deficit spending by Federal and State governments, future cost containment initiatives undertaken by third-party payors, our access to financing due to the volatility and disruption of the capital and credit markets, our ability to meet debt service requirements and comply with covenants in debt agreements, business disruptions due to natural disasters or acts of terrorism, our ability to integrate and manage our information systems and various other matters, many of which are beyond our control.

Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on any forward-looking statement as a prediction of future events. We expressly disclaim any obligation or undertaking and we do not intend to release publicly any updates or changes in our expectations concerning the forward-looking statements or any changes in events, conditions or circumstances upon which any forward-looking statement may be based, except as required by law.

Non-GAAP Financial Measure

This press release includes the following non-GAAP financial measure as defined under SEC rules: EBITDA, defined as net income attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization. In accordance with SEC rules, we have provided herein a reconciliation of this non-GAAP financial measure to the most directly comparable measure under generally accepted accounting principles (“GAAP”). Management believes that EBITDA is a useful gauge of our performance and is a common measure used in our industry to assess relative financial performance among companies.


AMEDISYS, INC. AND SUBSIDIARIES

SELECT CONSOLIDATED FINANCIAL STATEMENT DATA

(Amounts in thousands, except per share data)

(Unaudited)

Balance Sheet Information

 

     As of December 31,
     2009    2008

Current assets

   $ 218,036    $ 194,350

Total assets

     1,172,351      1,070,194

Total current liabilities

     229,306      204,627

Total long-term obligations

     206,710      303,449

Total equity

     736,335      562,118

Income Statement Information

 

     For the three-month periods ended
December 31,
    For the Years Ended
December 31,
 
     2009     2008     2009     2008  

Net service revenue

   $ 405,472      $ 340,096      $ 1,513,459      $ 1,187,415   

Cost of service, excluding depreciation and amortization

     197,370        161,989        724,465        562,633   

General and administrative and other expenses

     144,547        131,235        558,246        467,681   
                                

Operating expenses

     341,917        293,224        1,282,711        1,030,314   
                                

Operating income

     63,555        46,872        230,748        157,101   

Other expense

     (2,120     (5,067     (8,354     (15,745
                                

Income before income taxes

     61,435        41,805        222,394        141,356   

Income tax expense

     (23,397     (15,461     (86,171     (54,743
                                

Net income

     38,038        26,344        136,223        86,613   

Net (income) loss attributable to noncontrolling interests

     (246     (3     (386     69   
                                

Net income attributable to Amedisys, Inc.

   $ 37,792      $ 26,341      $ 135,837      $ 86,682   
                                

Net income per share attributable to Amedisys, Inc. common stockholders:

        

Basic

   $ 1.37      $ 0.99      $ 4.99      $ 3.28   
                                

Diluted

   $ 1.35      $ 0.97      $ 4.89      $ 3.22   
                                

Weighted average shares outstanding:

        

Basic

     27,607        26,692        27,231        26,445   
                                

Diluted

     28,095        27,096        27,759        26,903   
                                

Cash Flow Information

 

     For the three-month periods ended
December 31,
    For the Years Ended
December 31,
 
     2009     2008     2009     2008  

Net cash provided by operating activities

   $ 28,737      $ 63,907      $ 247,659      $ 150,741   

Net cash (used in) investing activities

     (32,484     (36,811     (97,255     (505,651

Net cash (used in) provided by financing activities

     (6,928     (29,913     (118,766     301,567   
                                

Net increase (decrease) in cash and cash equivalents

     (10,675     (2,817     31,638        (53,343

Cash and cash equivalents at beginning of period

     45,160        5,664        2,847        56,190   
                                

Cash and cash equivalents at end of period

   $ 34,485      $ 2,847      $ 34,485      $ 2,847   
                                


AMEDISYS, INC. AND SUBSIDIARIES

SELECT CONSOLIDATED KEY STATISTICAL AND FINANCIAL DATA

(Financial Data in thousands)

(Unaudited)

 

     For the three-month periods ended
December 31,
    For the Years Ended
December 31,
 
     2009     2008     2009     2008  

Financial Data:

        

Depreciation and amortization expense

   $ 7,630      $ 4,678      $ 28,312      $ 20,406   

Capital expenditures

   $ 10,361      $ 7,775      $ 36,359      $ 28,385   

Key Statistical Data:

        

General

        

Number of home health agencies

     521        480        521        480   

Number of hospice agencies

     65        48        65        48   

Number of home health agencies acquired

     1        9        8        131   

Number of hospice agencies acquired

           
3
  
   
12
  
    14   

Number of home health agencies opened as start-up locations

     13        15        41        35   

Number of hospice agencies opened as start-up locations

     4        1        7        5   

Days revenue outstanding, net (1)

     33.9        47.2        33.9        47.2   

Internal episodic-based revenue growth (2)

     15     30     18     28

Internal episodic-based admission growth (3)

     7     11     6     11

Internal episodic-based recertification growth (4)

     2     20     8     25

Total visits (5)

     2,261,121        1,991,407        8,702,146        7,004,200   

Home Health

        

Episodic-based admissions (6)

     59,694        53,748        231,782        199,371   

Episodic-based recertifications (7)

     51,652        49,773        204,757        178,840   

Episodic-based completed episodes (8)

     108,360        98,592        411,975        353,076   

Average episodic-based revenue per completed episode (9)

   $ 3,260      $ 2,972      $ 3,166      $ 2,854   

Episodic-based visits per completed episode (10)

     19.0        17.6        18.5        17.2   

Hospice

        

Average daily census (11)

     2,556        1,667        2,150        1,468   

Average length of stay (12)

     90        86        82        82   

 

(1)

Our calculation of days revenue outstanding, net at December 31, 2009 and 2008 is derived by dividing our ending net patient accounts receivable (i.e. net of estimated revenue adjustments and allowance for doubtful accounts) by our average daily net patient revenue for the three-month period ended December 31, 2009 and 2008, respectively.

(2)

Internal episodic-based revenue growth is the percent increase in our base/start-up episodic-based revenue for the period as a percent of the total episodic-based revenue of the prior period.

(3)

Internal episodic-based admission growth is the percent increase in our base/start-up episodic-based admissions for the period as a percent of the total episodic-based admissions of the prior period.

(4)

Internal episodic-based recertification growth is the percent increase in our base/start-up episodic-based recertifications for the period as a percent of the total episodic-based recertifications of the prior period.

(5)

Total visits are defined as 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 visited all eligible patients in their residences.

(6)

Episodic-based admissions are defined as the number of patients admitted to our agencies during the period for the first 60-day episode of care where payors reimburse us for services provided on an episodic-basis, which include Medicare and other insurance carriers, including Medicare Advantage programs.

(7)

Episodic-based recertifications are defined as the number of patients recertified to our agencies during the period for an additional 60-day episode of care where payors reimburse us for services provided on an episodic-basis, which include Medicare and other insurance carriers, including Medicare Advantage programs.

(8)

Episodic-based completed episodes are defined as the number of 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 where payors reimburse us for services provided on an episodic-basis, which include Medicare and other insurance carriers, including Medicare Advantage programs.

(9)

Average episodic-based revenue per completed episode is the average episodic-based revenue earned for each episodic-based completed episode of care.

(10)

Episodic-based visits per episode is calculated by dividing the total number of episodic-based visits on completed episodes in the period by the total number of episodic-based episodes completed in this period.

(11)

Average daily census is calculated by dividing the total number of patient days serviced in the period by the number of calendar days in the period.

(12)

Average length of stay is calculated by dividing the total number of days patients are on service in the period by the total number of days for discharged patients in the period.


AMEDISYS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL STATEMENTS

(Amounts in thousands)

(Unaudited)

Earnings before interest, taxes, depreciation and amortization (“EBITDA”)

 

     For the three-month periods ended
December 31,
   For the Years Ended
December 31,
     2009    2008    2009    2008

Net income attributable to Amedisys, Inc.

   $ 37,792    $ 26,341    $ 135,837    $ 86,682

Add:

           

Provision for income taxes

     23,397      15,461      86,171      54,743

Interest expense, net

     2,523      4,931      11,457      15,600

Depreciation and amortization

     7,630      4,678      28,312      20,406
                           

EBITDA (1)

   $ 71,342    $ 51,411    $ 261,777    $ 177,431
                           

 

(1)

EBITDA is defined as net income attributable to Amedisys, Inc. 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 financial measure in the same manner.