UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): JULY 31, 2013
Commission File Number: 0-24260
AMEDISYS, INC.
(Exact Name of Registrant as specified in its Charter)
Delaware | 11-3131700 | |
(State or other jurisdiction of incorporation or organization) |
(I.R.S. Employer Identification No.) |
5959 S. Sherwood Forest Blvd., Baton Rouge, LA 70816
(Address of principal executive offices, including zip code)
(225) 292-2031 or (800) 467-2662
(Registrants telephone number, including area code)
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
SECTION 2 FINANCIAL INFORMATION
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On July 31, 2013, Amedisys, Inc. (we, us, our or the Company) issued a press release announcing our financial results for the three and six-month periods ended June 30, 2013. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information presented in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that section, unless we specifically state that the information is to be considered filed under the Exchange Act or specifically incorporate it by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.
SECTION 7 REGULATION FD
ITEM 7.01. REGULATION FD DISCLOSURE
Item 2.02 of this Current Report on Form 8-K is incorporated herein by reference.
The information presented in Item 7.01 of this Current Report on Form 8-K shall not be deemed filed for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, unless we specifically state that the information is to be considered filed under the Exchange Act or specifically incorporate it by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.
SECTION 9 FINANCIAL STATEMENTS AND EXHIBITS
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits.
99.1 | Press release dated July 31, 2013, announcing the Companys financial results for the three and six-month periods ended June 30, 2013 (furnished only) |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
AMEDISYS, INC. (Registrant) | ||
By: | /s/ Scott G. Ginn | |
Scott G. Ginn | ||
Senior Vice President of Accounting and Controller (Principal Accounting Officer) |
DATE: July 31, 2013
Exhibit Index
Exhibit No. |
Description | |
99.1 | Press release dated July 31, 2013, announcing the Companys financial results for the three and six-month periods ended June 30, 2013 (furnished only) |
Exhibit 99.1
Contacts: | Investor Contact: | Media Contact: | ||
Amedisys, Inc. | Amedisys, Inc. | |||
Tom Dolan | Jacqueline Chen Valencia | |||
Senior Vice President, Finance and Treasurer | Senior Vice President Marketing & Communications | |||
(225) 292-3391 | (225) 299-3688 | |||
tom.dolan@amedisys.com | jacqueline.chen@amedisys.com |
AMEDISYS REPORTS SECOND QUARTER FINANCIAL RESULTS
AMEDISYS TO HOST CONFERENCE CALL TODAY AT 10:00 A.M. ET
BATON ROUGE, Louisiana (July 31, 2013) Amedisys, Inc. (NASDAQ: AMED), a leading home health and hospice company, today reported its financial results for the second quarter ended June 30, 2013.
Three-Month Periods Ended June 30, 2013 and 2012
| After adding back $5.1 million and $1.4 million ($3.1 million and $0.8 million, net of income tax) or $0.10 and $0.03 per diluted share for exit activity costs, the gain on sale of care centers and legal fees associated with investigations, the following would have been our adjusted results: |
| Net service revenue of $313.1 million compared to $363.1 million in 2012, a decrease of 13.7%. |
| Net income from continuing operations attributable to Amedisys, Inc., of $5.4 million compared to $8.7 million in 2012, a decrease of 38.0%. |
| Net income from continuing operations attributable to Amedisys, Inc. per diluted share of $0.17 compared to $0.29 per diluted share in 2012, a decrease of 41.4%. |
| Earnings before interest, taxes, depreciation and amortization attributable to continuing operations (EBITDA) of $19.1 million compared to $26.6 million in 2012, a decrease of 28.3%. |
Six-Month Periods Ended June 30, 2013 and 2012
| After adding back $7.1 million and $5.1 million ($4.3 million and $3.0 million, net of income tax) or $0.14 and $0.10 per diluted share for exit activity costs, the gain on sale of care centers and legal fees associated with investigations, the following would have been our adjusted results: |
| Net service revenue of $639.2 million compared to $719.0 million in 2012, a decrease of 11.1%. |
| Net income from continuing operations attributable to Amedisys, Inc., of $9.8 million compared to $17.7 million in 2012, a decrease of 44.7%. |
| Net income from continuing operations attributable to Amedisys, Inc. per diluted share of $0.31 compared to $0.59 per diluted share in 2012, a decrease of 47.5%. |
| EBITDA of $37.0 million compared to $53.9 million in 2012, a decrease of 31.4%. |
William F. Borne, Chief Executive Officer stated, We are pleased to report adjusted earnings for the second quarter of $0.17 per share, an improvement of $0.03 sequentially. Despite a $0.09 negative impact from sequestration and continued lower volumes, reductions in operating expenses led to the improved results. We continue to make progress on numerous strategic initiatives focused on growth, increasing efficiency and continued improvement in patient outcomes.
2013 Guidance
| Net service revenue is anticipated to be in the range of $1.240 billion to $1.280 billion. |
| Diluted earnings per share is expected to be in the range of $0.45 to $0.55 based on an estimated 31.5 million shares outstanding. |
This guidance excludes any one-time costs associated with our announced market exit activity or corporate expense initiatives. Our guidance includes an estimate of legal costs associated with our on-going government investigations.
We urge caution in considering the current trends and 2013 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, 2012, and subsequent Quarterly Reports on Form 10-Q, and current reports on Form 8-K which can be found on the SECs internet website, http://www.sec.gov, and our internet website, http://www.amedisys.com. We disclaim any obligations to update disclosed information on trends.
* | See page 8 for the reconciliations of non-GAAP financial measures |
1
Earnings Call and Webcast Information
To participate in the conference call, please call a few minutes before 10:00 a.m. ET on Wednesday, July 31, 2013, to either (877) 512-9171 (Toll free) or (815) 573-0979 (Toll), use conference ID #22419959. A replay of the conference call will be available through August 7, 2013. The replay dial in number is (855) 859-2056 (Toll free) or (404) 537-3406 (Toll), use conference ID #22419959.
The call will also be available through our website and for seven days thereafter at the following web address: http://investors.amedisys.com.
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. We use our website 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 care centers, acquire additional care centers and integrate and operate these care centers effectively, our ability to divest care centers currently held for sale, 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, changes in or developments with respect to any litigation or investigations relating to the Company, including the SEC investigation and the U.S. Department of Justice Civil Investigative Demand 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 Measures
This press release includes the following non-GAAP financial measures as defined under SEC rules: EBITDA, defined as net income from continuing operations attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization, adjusted EBITDA, defined as EBITDA plus exit activity costs, the gain on sale of care centers and legal fees associated with investigations, adjusted net income from continuing operations attributable to Amedisys, Inc., defined as net income from continuing operations attributable to Amedisys, Inc. plus exit activity costs, the gain on sale of care centers and legal fees associated with investigations, and adjusted net income from continuing operations attributable to Amedisys, Inc. per diluted share, defined as net income from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share plus the earnings per share effect of exit activity costs, the gain on sale of care centers and legal fees associated with investigations. In accordance with SEC rules, we have provided herein a reconciliation of these non-GAAP financial measures to the most directly comparable measures under GAAP. Management believes that these are useful gauges of our performance and are common measures used in our industry to assess relative financial performance among companies.
2
AMEDISYS, INC. AND SUBSIDIARIES
SELECT CONSOLIDATED FINANCIAL STATEMENT DATA AND SUPPLEMENTAL INFORMATION
(Amounts in thousands, except share, per share data and statistical information)
(Unaudited)
Balance Sheet Information
June 30, 2013 | December 31, 2012 | |||||||
ASSETS | ||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 30,118 | $ | 14,545 | ||||
Patient accounts receivable, net of allowance for doubtful accounts of $17,610 and $20,994 |
124,766 | 169,172 | ||||||
Prepaid expenses |
13,369 | 10,631 | ||||||
Other current assets |
12,006 | 11,440 | ||||||
Assets held for sale |
1,550 | | ||||||
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|
|
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Total current assets |
181,809 | 205,788 | ||||||
Property and equipment, net of accumulated depreciation of $120,012, and $113,154 |
156,887 | 156,709 | ||||||
Goodwill |
209,260 | 209,594 | ||||||
Intangible assets, net of accumulated amortization of $24,560 and $23,457 |
43,109 | 47,050 | ||||||
Deferred tax asset |
85,256 | 92,804 | ||||||
Other assets, net |
23,932 | 18,650 | ||||||
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Total assets |
$ | 700,253 | $ | 730,595 | ||||
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LIABILITIES AND EQUITY | ||||||||
Current Liabilities: |
||||||||
Accounts payable |
$ | 21,658 | $ | 29,175 | ||||
Payroll and employee benefits |
76,205 | 79,341 | ||||||
Accrued expenses |
54,175 | 54,855 | ||||||
Current portion of long-term obligations |
35,807 | 35,807 | ||||||
Current portion of deferred income taxes |
3,169 | 5,609 | ||||||
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Total current liabilities |
191,014 | 204,787 | ||||||
Long-term obligations, less current portion |
39,000 | 66,904 | ||||||
Other long-term obligations |
5,209 | 4,671 | ||||||
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Total liabilities |
235,223 | 276,362 | ||||||
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Equity: |
||||||||
Preferred stock, $0.001 par value, 5,000,000 shares authorized; none issued or outstanding |
| | ||||||
Common stock, $0.001 par value, 60,000,000 shares authorized; 32,973,576 and 31,876,508 share issued; and 32,106,174 and 31,086,619 share outstanding |
33 | 32 | ||||||
Additional paid-in capital |
458,475 | 450,792 | ||||||
Treasury stock at cost, 867,402 and 789,889 shares of common stock |
(18,056 | ) | (17,116 | ) | ||||
Accumulated other comprehensive income |
15 | 15 | ||||||
Retained earnings |
23,136 | 18,617 | ||||||
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Total Amedisys, Inc. stockholders equity |
463,603 | 452,340 | ||||||
Noncontrolling interests |
1,427 | 1,893 | ||||||
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Total equity |
465,030 | 454,233 | ||||||
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Total liabilities and equity |
$ | 700,253 | $ | 730,595 | ||||
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|
3
Income Statement Information
For the Three-Month Periods Ended June 30, |
For the Six-Month Periods Ended June 30, |
|||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net service revenue |
$ | 313,148 | $ | 363,068 | $ | 639,201 | $ | 719,056 | ||||||||
Cost of service, excluding depreciation and amortization |
176,077 | 202,586 | 360,233 | 401,637 | ||||||||||||
General and administrative expenses: |
||||||||||||||||
Salaries and benefits |
74,601 | 82,983 | 154,043 | 166,270 | ||||||||||||
Non-cash compensation |
1,224 | 2,298 | 3,280 | 4,780 | ||||||||||||
Other |
41,121 | 45,632 | 82,739 | 88,240 | ||||||||||||
Provision for doubtful accounts |
4,658 | 4,534 | 8,502 | 10,217 | ||||||||||||
Depreciation and amortization |
11,674 | 9,678 | 21,621 | 19,515 | ||||||||||||
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Operating expenses |
309,355 | 347,711 | 630,418 | 690,659 | ||||||||||||
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Operating income |
3,793 | 15,357 | 8,783 | 28,397 | ||||||||||||
Other (expense) income: |
||||||||||||||||
Interest income |
11 | 28 | 22 | 42 | ||||||||||||
Interest expense |
(730 | ) | (2,002 | ) | (1,836 | ) | (4,076 | ) | ||||||||
Equity in earnings from equity investments |
337 | 396 | 700 | 701 | ||||||||||||
Gain on sale of care centers |
357 | | 357 | | ||||||||||||
Miscellaneous, net |
136 | (126 | ) | 196 | 309 | |||||||||||
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Total other expense, net |
111 | (1,704 | ) | (561 | ) | (3,024 | ) | |||||||||
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Income before income taxes |
3,904 | 13,653 | 8,222 | 25,373 | ||||||||||||
Income tax expense |
(1,566 | ) | (5,666 | ) | (3,260 | ) | (10,530 | ) | ||||||||
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Income from continuing operations |
2,338 | 7,987 | 4,962 | 14,843 | ||||||||||||
Discontinued operations, net of tax |
(490 | ) | (21 | ) | (982 | ) | (1,414 | ) | ||||||||
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Net income |
1,848 | 7,966 | 3,980 | 13,429 | ||||||||||||
Net (income) loss attributable to noncontrolling interests |
(7 | ) | (84 | ) | 539 | (127 | ) | |||||||||
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Net income attributable to Amedisys, Inc. |
$ | 1,841 | $ | 7,882 | $ | 4,519 | $ | 13,302 | ||||||||
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Basic earnings per common share: |
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Income from continuing operations attributable to Amedisys, Inc. common stockholders |
$ | 0.07 | $ | 0.26 | $ | 0.18 | $ | 0.50 | ||||||||
Discontinued operations, net of tax |
(0.01 | ) | | (0.03 | ) | (0.05 | ) | |||||||||
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Net income attributable to Amedisys, Inc. common stockholders |
$ | 0.06 | $ | 0.26 | $ | 0.15 | $ | 0.45 | ||||||||
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Weighted average shares outstanding |
31,160 | 29,780 | 30,900 | 29,584 | ||||||||||||
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Diluted earnings per common share: |
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Income from continuing operations attributable to Amedisys, Inc. common stockholders |
$ | 0.07 | $ | 0.26 | $ | 0.17 | $ | 0.49 | ||||||||
Discontinued operations, net of tax |
(0.01 | ) | | (0.03 | ) | (0.05 | ) | |||||||||
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Net income attributable to Amedisys, Inc. common stockholders |
$ | 0.06 | $ | 0.26 | $ | 0.14 | $ | 0.44 | ||||||||
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Weighted average shares outstanding |
31,489 | 30,026 | 31,298 | 29,903 | ||||||||||||
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Amounts attributable to Amedisys, Inc. common stockholders: |
||||||||||||||||
Income from continuing operations |
$ | 2,331 | $ | 7,903 | $ | 5,501 | $ | 14,716 | ||||||||
Discontinued operations, net of tax |
(490 | ) | (21 | ) | (982 | ) | (1,414 | ) | ||||||||
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Net income |
$ | 1,841 | $ | 7,882 | $ | 4,519 | $ | 13,302 | ||||||||
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4
Cash Flow and Days Revenue Outstanding, Net Information
For the Three-Month Periods
ended June 30, |
For the Six-Month Periods
ended June 30, |
|||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net cash provided by operating activities |
$ | 33,561 | $ | 21,178 | $ | 65,977 | $ | 32,105 | ||||||||
Net cash used in investing activities |
(7,390 | ) | (17,878 | ) | (24,215 | ) | (27,931 | ) | ||||||||
Net cash used in financing activities |
(3,074 | ) | (7,432 | ) | (26,189 | ) | (15,020 | ) | ||||||||
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Net increase (decrease) in cash and cash equivalents |
23,097 | (4,132 | ) | 15,573 | (10,846 | ) | ||||||||||
Cash and cash equivalents at beginning of period |
7,021 | 41,290 | 14,545 | 48,004 | ||||||||||||
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Cash and cash equivalents at end of period |
$ | 30,118 | $ | 37,158 | $ | 30,118 | $ | 37,158 | ||||||||
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Days revenue outstanding, net (1) |
33.9 | 38.0 | 33.9 | 38.0 |
(1) | Our calculation of days revenue outstanding, net at June 30, 2013 and 2012 is derived by dividing our ending 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 June 30, 2013 and 2012, respectively. |
Supplemental Information - Home Health
For the Three-Month Periods Ended June 30, | ||||||||
2013 | 2012 | |||||||
Financial Information (in millions): |
||||||||
Medicare |
$ | 202.9 | $ | 229.4 | ||||
Non-Medicare |
45.7 | 61.2 | ||||||
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Net service revenue |
248.6 | 290.6 | ||||||
Cost of service |
142.0 | 165.3 | ||||||
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Gross margin |
106.6 | 125.3 | ||||||
Other operating expenses |
81.2 | 88.8 | ||||||
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Operating income |
$ | 25.4 | $ | 36.5 | ||||
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Key Statistical Data: |
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Medicare: |
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Same Store Volume (1) |
||||||||
Revenue |
(10 | %) | (8 | %) | ||||
Admissions |
0 | % | 2 | % | ||||
Recertifications |
(18 | %) | (7 | %) | ||||
Total: |
||||||||
Admissions |
47,381 | 48,023 | ||||||
Recertifications |
27,331 | 33,965 | ||||||
Completed Episodes |
74,963 | 79,781 | ||||||
Visits |
1,312,222 | 1,546,329 | ||||||
Average revenue per completed episode (2) |
$ | 2,828 | $ | 2,879 | ||||
Visits per completed episode (3) |
17.6 | 19.1 | ||||||
Non-Medicare: |
||||||||
Admissions |
18,161 | 23,047 | ||||||
Recertifications |
7,516 | 10,465 | ||||||
Visits |
378,928 | 523,111 | ||||||
Total: |
||||||||
Cost per Visit |
$ | 83.98 | $ | 79.86 | ||||
Visits |
1,691,150 | 2,069,440 |
5
For the Six-Month Periods Ended June 30, | ||||||||
2013 | 2012 | |||||||
Financial Information (in millions): |
||||||||
Medicare |
$ | 413.9 | $ | 460.7 | ||||
Non-Medicare |
94.9 | 117.7 | ||||||
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Net service revenue |
508.8 | 578.4 | ||||||
Cost of service |
291.3 | 328.5 | ||||||
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Gross margin |
217.5 | 249.9 | ||||||
Other operating expenses |
165.4 | 181.0 | ||||||
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Operating income |
$ | 52.1 | $ | 68.9 | ||||
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Key Statistical Data: |
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Medicare: |
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Same Store Volume (1) |
||||||||
Revenue |
(9 | %) | (8 | %) | ||||
Admissions |
1 | % | 0 | % | ||||
Recertifications |
(17 | %) | (6 | %) | ||||
Total: |
||||||||
Admissions |
97,047 | 96,767 | ||||||
Recertifications |
55,836 | 68,328 | ||||||
Completed Episodes |
150,362 | 158,352 | ||||||
Visits |
2,671,801 | 3,099,753 | ||||||
Average revenue per completed episode (2) |
$ | 2,801 | $ | 2,876 | ||||
Visits per completed episode (3) |
17.5 | 18.9 | ||||||
Non-Medicare: |
||||||||
Admissions |
39,699 | 45,333 | ||||||
Recertifications |
15,707 | 19,942 | ||||||
Visits |
800,086 | 1,008,690 | ||||||
Total: |
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Cost per Visit |
$ | 83.90 | $ | 79.95 | ||||
Visits |
3,471,887 | 4,108,443 |
(1) | Medicare revenue, admissions or recertifications volume is the percent increase (decrease) in our Medicare revenue, admissions or recertifications for the period as a percent of the Medicare revenue, admissions or recertifications of the prior period. |
(2) | Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare completed episode of care which excludes the impact of sequestration. |
(3) | Medicare visits per completed episode are the home health Medicare visits on completed episodes divided by the home health Medicare episodes completed during the period. |
6
Supplemental Information - Hospice
For the Three-Month Periods Ended June 30, | ||||||||
2013 | 2012 | |||||||
Financial Information (in millions): |
||||||||
Medicare |
$ | 60.8 | $ | 68.7 | ||||
Non-Medicare |
3.7 | 3.8 | ||||||
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Net service revenue |
64.5 | 72.5 | ||||||
Cost of service |
34.1 | 37.3 | ||||||
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Gross margin |
30.4 | 35.2 | ||||||
Other operating expenses |
17.7 | 18.7 | ||||||
|
|
|
|
|||||
Operating income |
$ | 12.7 | $ | 16.5 | ||||
|
|
|
|
|||||
Key Statistical Data: |
||||||||
Same store Medicare revenue growth (1) |
(12 | %) | 22 | % | ||||
Hospice Admits |
4,600 | 4,797 | ||||||
Average daily census |
4,939 | 5,402 | ||||||
Revenue per day |
$ | 143.63 | $ | 147.39 | ||||
Cost of service per day |
$ | 75.40 | $ | 75.79 | ||||
Average length of stay |
99 | 95 |
For the Six-Month Periods Ended June 30, | ||||||||
2013 | 2012 | |||||||
Financial Information (in millions): |
||||||||
Medicare |
$ | 122.9 | $ | 132.9 | ||||
Non-Medicare |
7.5 | 7.7 | ||||||
|
|
|
|
|||||
Net service revenue |
130.4 | 140.6 | ||||||
Cost of service |
68.9 | 73.1 | ||||||
|
|
|
|
|||||
Gross margin |
61.5 | 67.5 | ||||||
Other operating expenses |
37.4 | 36.0 | ||||||
|
|
|
|
|||||
Operating income |
$ | 24.1 | $ | 31.5 | ||||
|
|
|
|
|||||
Key Statistical Data: |
||||||||
Same store Medicare revenue growth (1) |
(8 | %) | 20 | % | ||||
Hospice Admits |
9,528 | 9,589 | ||||||
Average daily census |
4,973 | 5,248 | ||||||
Revenue per day |
$ | 144.84 | $ | 147.29 | ||||
Cost of service per day |
$ | 76.30 | $ | 76.45 | ||||
Average length of stay |
101 | 93 |
(1) | Same store Medicare revenue growth is the percent increase in our Medicare revenue for the period as a percent of the Medicare revenue of the prior period. |
7
AMEDISYS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURE TO GAAP FINANCIAL STATEMENTS
(Amounts in thousands)
(Unaudited)
Earnings From Continuing Operations Before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA
For the Three-Month Periods Ended June 30, |
For the Six-Month Periods Ended June 30, |
|||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income from continuing operations attributable to Amedisys, Inc. |
$ | 2,331 | $ | 7,903 | $ | 5,501 | $ | 14,716 | ||||||||
Add: |
||||||||||||||||
Provision for income taxes |
1,566 | 5,666 | 3,260 | 10,530 | ||||||||||||
Interest expense, net |
719 | 1,974 | 1,814 | 4,034 | ||||||||||||
Depreciation and amortization |
11,674 | 9,678 | 21,621 | 19,515 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
EBITDA (1) |
$ | 16,290 | $ | 25,221 | $ | 32,196 | $ | 48,795 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Add: |
||||||||||||||||
Exit activity costs (2) |
3,855 | | 3,855 | | ||||||||||||
Gain on sale of care centers |
(357 | ) | | (357 | ) | | ||||||||||
Intangible write-off |
(2,286 | ) | | (2,286 | ) | | ||||||||||
Legal fees (investigations) |
1,584 | 1,406 | 3,587 | 5,113 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted EBITDA (3) |
$ | 19,086 | $ | 26,627 | $ | 36,995 | $ | 53,908 | ||||||||
|
|
|
|
|
|
|
|
Adjusted Net Income From Continuing Operations Attributable to Amedisys, Inc.:
For the Three-Month Periods Ended June 30, |
For the Six-Month Periods Ended June 30, |
|||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income from continuing operations attributable to Amedisys, Inc. |
$ | 2,331 | $ | 7,903 | $ | 5,501 | $ | 14,716 | ||||||||
Add: |
||||||||||||||||
Exit activity costs (2) |
2,332 | | 2,332 | | ||||||||||||
Gain on sale of care centers |
(216 | ) | | (216 | ) | | ||||||||||
Legal fees (investigations) |
959 | 823 | 2,170 | 2,991 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted net income from continuing operations attributable to Amedisys, Inc. (4) |
$ | 5,406 | $ | 8,726 | $ | 9,787 | $ | 17,707 | ||||||||
|
|
|
|
|
|
|
|
Adjusted Net Income From Continuing Operations Attributable to Amedisys, Inc. per Diluted Share:
For the Three-Month Periods Ended June 30, |
For the Six-Month Periods Ended June 30, |
|||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net income from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share |
$ | 0.07 | $ | 0.26 | $ | 0.17 | $ | 0.49 | ||||||||
Add: |
||||||||||||||||
Exit activity costs (2) |
0.08 | | 0.08 | | ||||||||||||
Gain on sale of care centers |
(0.01 | ) | | (0.01 | ) | | ||||||||||
Legal fees (investigations) |
0.03 | 0.03 | 0.07 | 0.10 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Adjusted net income from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share (5) |
$ | 0.17 | $ | 0.29 | $ | 0.31 | $ | 0.59 | ||||||||
|
|
|
|
|
|
|
|
(1) | EBITDA is defined as net income from continuing operations 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. |
(2) | Exit activity costs of $3.8 million ($2.3 million net of tax or $0.08 per diluted share) include charges of $2.3 million in depreciation and amortization expense related to the write-off of intangible assets, $0.8 million in other general and administrative expenses related to lease termination costs and $0.7 million in salaries and benefits related to severance costs during the three-month period ended June 30, 2013. |
(3) | Adjusted EBITDA is defined as net income from continuing operations attributable to Amedisys, Inc. before provision for income taxes, net interest expense, depreciation and amortization plus exit activity costs, the gain on sale of care centers and legal fees associated with investigations. Adjusted 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 adjusted 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. |
8
(4) | Adjusted net income from continuing operations attributable to Amedisys, Inc. is defined as net income from continuing operations attributable to Amedisys, Inc. plus exit activity costs, the gain on sale of care centers, and legal fees associated with investigations. Adjusted net income from continuing operations attributable to Amedisys, Inc. 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 adjusted net income from continuing operations attributable to Amedisys, Inc. 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. |
(5) | Adjusted net income from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share is defined as diluted earnings from continuing operations per share plus the earnings per share effect of exit activity costs, the gain on sale of care centers and legal fees associated with investigations. Adjusted net income from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share 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 or operating performance. This calculation of adjusted net income from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share 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. |
9
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