EX-99.1 2 d538219dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

AMEDISYS REPORTS FOURTH QUARTER AND YEAR END 2017 FINANCIAL RESULTS

ISSUES 2018 GUIDANCE

BATON ROUGE, Louisiana (February 27, 2018) — Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three month period and year ended December 31, 2017.

Three Month Periods Ended December 31, 2017 and 2016

 

    Net service revenue increased $37.9 million to $404.2 million compared to $366.3 million in 2016.

 

    Net loss attributable to Amedisys, Inc. of $3.8 million which is inclusive of a $21.4 million reduction in net income as a result of the enactment of H.R. 1 (Tax Cuts and Jobs Act), compared to net income attributable to Amedisys, Inc. of $8.9 million in 2016.

 

    Net loss attributable to Amedisys, Inc. per diluted share of $0.11 compared to net income attributable to Amedisys, Inc. of $0.26 in 2016.

Adjusted Quarterly Results*

 

    Adjusted EBITDA of $37.1 million compared to $30.5 million in 2016.

 

    Adjusted net service revenue of $404.2 million compared to $365.1 million in 2016.

 

    Adjusted net income attributable to Amedisys, Inc. of $ 19.4 million compared to $15.0 million in 2016.

 

    Adjusted net income attributable to Amedisys, Inc. per diluted share of $0.56 compared to $0.44 in 2016.

Years Ended December 31, 2017 and 2016

 

    Net service revenue increased $96.2 million to $1,533.7 million compared to $1,437.4 million in 2016.

 

    Net income attributable to Amedisys, Inc. of $30.3 million which is inclusive of a $21.4 million reduction in net income as a result of the enactment of H.R. 1 (Tax Cuts and Jobs Act), compared to $37.3 million in 2016.

 

    Net income attributable to Amedisys, Inc. per diluted share of $0.88 compared to $1.10 in 2016.

Adjusted Year End Results*

 

    Adjusted EBITDA of $142.2 million compared to $109.9 million in 2016.

 

    Adjusted net service revenue of $1,540.2 million compared to $1,437.3 million in 2016.

 

    Adjusted net income attributable to Amedisys, Inc. of $75.9 million compared to $52.2 million in 2016.

 

    Adjusted net income attributable to Amedisys, Inc. per diluted share of $2.21 compared to $1.55 in 2016.

 

* See pages 12 and 13 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

Paul B. Kusserow, President and Chief Executive Officer stated, “I am extremely pleased with the results that our team delivered during the fourth quarter and in 2017. We demonstrated solid growth across all three line of business, continued to improve our position as an industry leader in clinical quality and realized the efficiencies that we promised to our stakeholders in early 2016; all of which helped deliver significant increases in revenue, EBITDA and earnings per share. Entering 2018, we remain focused on our four strategic areas of focus: clinical distinction, employer of choice, operational efficiency and driving growth. As a result of our efforts in the last few years, we have a strong balance sheet and will look to deploy capital to expand our businesses and continue our dedication to deliver value to our patients, referral sources, and, ultimately, our shareholders.”

 

1


2018 Guidance

 

    Net service revenue is anticipated to be in the range of $1.60 billion to $1.64 billion.

 

    Adjusted EBITDA is anticipated to be in the range of $158 million to $163 million.

 

    Adjusted diluted earnings per share is anticipated to be in the range of $2.97 to $3.08 based on an estimated 34.85 million shares outstanding.

This guidance excludes the effects of any future acquisitions, if any are made.

We urge caution in considering the current trends and 2018 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, 2017, 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.

Earnings Call and Webcast Information

Amedisys will host a conference call on Wednesday, February 28, 2018, at 12:00 p.m. ET to discuss its fourth quarter and year end results. To participate on the conference call, please call before 12:00 p.m. ET to either (877) 524-8416 (Toll-Free) or (412) 902-1028 (Toll). A replay of the conference call will be available through March 28, 2018 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13676051.

A live webcast of the call will be accessible through our website on our Investor Relations section at the following web address: http://investors.amedisys.com.

Non-GAAP Financial Measures

This press release includes reconciliations of the most comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”) to non-GAAP financial measures. The non-GAAP financial measures as defined under SEC rules are as follows: (1) adjusted EBITDA, defined as net income (loss) attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization, excluding certain items; (2) adjusted net service revenue, defined as net service revenue excluding certain items; (3) adjusted net income attributable to Amedisys, Inc., defined as net income (loss) attributable to Amedisys, Inc. excluding certain items; and (4) adjusted net income attributable to Amedisys, Inc. per diluted share, defined as net income (loss) attributable to Amedisys, Inc. common stockholders per diluted share excluding certain items. Management believes that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, are useful gauges of our current performance and are also included in internal management reporting. These non-GAAP financial measures should be considered in addition to, and not more meaningful than or as an alternative to the GAAP financial measures presented in this earnings release and the company’s financial statements. Non-GAAP measures as presented herein may not be comparable to similarly titled measures reported by other companies since not all companies calculate these non-GAAP measures consistently.

Additional information

Amedisys, Inc. (the “Company”) is a leading healthcare at home Company delivering personalized home health, hospice and personal care. Amedisys is focused on delivering the care that is best for our patients, whether that is home-based personal care; recovery and rehabilitation after an operation or injury; care focused on empowering them to manage a chronic disease; or hospice care at the end of life. More than 3,000 hospitals and 59,000 physicians nationwide have chosen Amedisys as a partner in post-acute care. Founded in 1982, headquartered in Baton Rouge, LA with an executive office in Nashville, TN, Amedisys is a publicly held company. With 17,900 employees, in 421 care centers in 34 states and the District of Columbia, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 369,000 patients in need every year. For more information about the Company, please visit: www.amedisys.com.

We use our website as a channel of distribution for important company information. Important information, including press releases, investor 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. 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

 

2


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, 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 healthcare industry, our ability to integrate our personal care segment into our business efficiently, 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 by federal and state governments, future cost containment initiatives undertaken by third-party payors, our access to financing, 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, manage and keep our information systems secure, our ability to comply with requirements stipulated in our corporate integrity agreement and changes in law or developments with respect to any litigation relating to the Company, including 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.

 

Contact:    Investor Contact:    Media Contact:
   Amedisys, Inc.    Amedisys, Inc.
   David Castille    Kendra Kimmons
   Managing Director, Treasury/Finance    Vice President, Marketing & Communications
   (855) 259-2046    (225) 299-3720
   IR@amedisys.com    kendra.kimmons@amedisys.com

 

3


AMEDISYS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

(Amounts in thousands, except per share data)

 

     For the Three Month Period
Ended December 31,
    For the Year Ended
December 31,
 
     2017     2016     2017     2016  
     (Unaudited)              

Net service revenue

   $ 404,238   $ 366,296   $ 1,533,680   $ 1,437,454

Cost of service, excluding depreciation and amortization

     238,534     212,589     900,726     833,055

General and administrative expenses:

        

Salaries and benefits

     79,406     75,902     305,938     306,981

Non-cash compensation

     4,507     3,845     16,295     16,401

Other

     39,757     45,097     159,980     180,048

Provision for doubtful accounts

     6,981     5,855     25,059     19,519

Depreciation and amortization

     3,984     5,016     17,123     19,678

Asset impairment charge

     1,323     4,432     1,323     4,432

Securities Class Action Lawsuit settlement, net

     —         —         28,712     —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

     374,492     352,736     1,455,156     1,380,114
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     29,746     13,560     78,524     57,340

Other income (expense):

        

Interest income

     54     30     158     75

Interest expense

     (1,431     (1,613     (5,031     (5,164

Equity in earnings from equity method investments

     232     1,986     3,381     5,588

Miscellaneous, net

     487     621     3,769     3,727
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense), net

     (658     1,024     2,277     4,226
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     29,088     14,584     80,801     61,566

Income tax expense

     (32,794     (5,612     (50,118     (23,935
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     (3,706     8,972     30,683     37,631

Net income attributable to noncontrolling interests

     (142     (55     (382     (370
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to Amedisys, Inc.

   $ (3,848   $ 8,917   $ 30,301   $ 37,261
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per common share:

 

Net income (loss) attributable to Amedisys, Inc. common stockholders

   $ (0.11   $ 0.27   $ 0.90   $ 1.12

Weighted average shares outstanding

     33,898     33,365     33,704     33,198

Diluted earnings per common share:

 

Net income (loss) attributable to Amedisys, Inc. common stockholders

   $ (0.11   $ 0.26   $ 0.88   $ 1.10

Weighted average shares outstanding

     33,898     33,866     34,304     33,741

 

4


AMEDISYS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

(Amounts in thousands, except share data)

 

     December 31, 2017     December 31, 2016  
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 86,363   $ 30,197

Patient accounts receivable, net of allowance for doubtful accounts of $20,866 and $17,716

     201,196     166,056

Prepaid expenses

     7,329     7,397

Other current assets

     16,268     11,260
  

 

 

   

 

 

 

Total current assets

     311,156     214,910

Property and equipment, net of accumulated depreciation of $146,814 and $138,650

     31,122     36,999

Goodwill

     319,949     288,957

Intangible assets, net of accumulated amortization of $30,610 and $27,864

     46,061     46,755

Deferred income taxes

     56,064     107,940

Other assets, net

     49,130     38,468
  

 

 

   

 

 

 

Total assets

   $ 813,482   $ 734,029
  

 

 

   

 

 

 
LIABILITIES AND EQUITY     

Current liabilities:

    

Accounts payable

   $ 25,384   $ 30,358

Payroll and employee benefits

     89,936     82,480

Accrued expenses

     89,104     63,290

Current portion of long-term obligations

     10,638     5,220
  

 

 

   

 

 

 

Total current liabilities

     215,062     181,348

Long-term obligations, less current portion

     78,203     87,809

Other long-term obligations

     3,791     3,730
  

 

 

   

 

 

 

Total liabilities

     297,056     272,887
  

 

 

   

 

 

 

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; 35,747,134 and 35,253,577 shares issued; and 33,964,767 and 33,597,215 shares outstanding

     35     35

Additional paid-in capital

     568,780     537,472

Treasury stock at cost, 1,782,367 and 1,656,362 shares of common stock

     (53,713     (46,774

Accumulated other comprehensive income

     15     15

Retained earnings (deficit)

     204     (30,545
  

 

 

   

 

 

 

Total Amedisys, Inc. stockholders’ equity

     515,321     460,203

Noncontrolling interests

     1,105     939
  

 

 

   

 

 

 

Total equity

     516,426     461,142
  

 

 

   

 

 

 

Total liabilities and equity

   $ 813,482   $ 734,029
  

 

 

   

 

 

 

 

5


AMEDISYS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING, NET

(Amounts in thousands, except statistical information)

 

     For the Three Month Period
Ended December 31,
    For the Year Ended
December 31,
 
     2017     2016     2017     2016  
     (Unaudited)              

Cash Flows from Operating Activities:

        

Net income (loss)

   $ (3,706   $ 8,972   $ 30,683   $ 37,631

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

        

Depreciation and amortization

     3,984     5,016     17,123     19,678

Provision for doubtful accounts

     6,981     5,855     25,059     19,519

Non-cash compensation

     4,507     3,845     16,295     16,401

401(k) employer match

     2,207     1,741     8,754     6,875

Write-off of investment

     —         196     —         196

Loss on disposal of property and equipment

     22     26     —         582

Deferred income taxes

     34,950     5,858     52,178     24,547

Equity in earnings from equity method investments

     (232     (1,986     (3,381     (5,588

Amortization of deferred debt issuance costs

     180     185     735     740

Return on equity investment

     665     2,410     5,321     4,323

Asset impairment charge

     1,323     4,432     1,323     4,432

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

        

Patient accounts receivable

     (30,807     (9,412     (59,731     (55,519

Other current assets

     956     3,361     (4,940     4,231

Other assets

     (547     494     (12,749     (11,415

Accounts payable

     2,587     (3,338     (2,843     3,970

Accrued expenses

     9,259     1,482     31,843     (7,618

Other long-term obligations

     (140     (576     61     (726
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     32,189     28,561     105,731     62,259
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flows from Investing Activities:

        

Proceeds from sale of deferred compensation plan assets

     —         —         622     230

Proceeds from sale of property and equipment

     131     —         249     —    

Purchases of property and equipment

     (1,633     (2,215     (10,707     (15,717

Purchase of investments

     (40     (290     (476     (1,040

Acquisitions of businesses, net of cash acquired

     (9,587     (4,144     (33,715     (35,522
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (11,129     (6,649     (44,027     (52,049
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flows from Financing Activities:

        

Proceeds from issuance of stock upon exercise of stock options and warrants

     340     —         4,554     —    

Proceeds from issuance of stock to employee stock purchase plan

     584     665     2,382     2,483

Shares withheld upon stock vesting

     (485     —         (6,939     —    

Tax benefit from stock options exercised and restricted stock vesting

     —         —         —         7,241

Non-controlling interest distribution

     —         (45     (216     (329

Proceeds from revolving line of credit

     —         6,000     —         134,500

Repayments of revolving line of credit

     —         (6,000     —         (134,500

Principal payments of long-term obligations

     (1,250     (1,250     (5,319     (5,000

Purchase of company stock

     —         —         —         (12,315

Assets contributed to equity investment

     —         —         —         405
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

     (811     (630     (5,538     (7,515
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase in cash and cash equivalents

     20,249     21,282     56,166     2,695

Cash and cash equivalents at beginning of period

     66,114     8,915     30,197     27,502
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 86,363   $ 30,197   $ 86,363   $ 30,197
  

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Disclosures of Cash Flow Information:

        

Cash paid for interest

   $ 509   $ 621   $ 2,697   $ 2,897
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash paid for income taxes, net of refunds received

   $ —       $ (3   $ 315   $ 755
  

 

 

   

 

 

   

 

 

   

 

 

 

Days revenue outstanding, net (1)

     44.0     40.2     44.0     40.2

(1) Our calculation of days revenue outstanding, net at December 31, 2017 and 2016 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 periods ended December 31, 2017 and 2016, respectively.

 

6


AMEDISYS, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Amounts in millions, except statistical information)

(Unaudited)

Segment Information - Home Health        

 

     For the Three Month Period Ended December 31,  
     2017     2016  

Financial Information (in millions):

    

Medicare

   $ 205.0   $ 203.2

Non-Medicare

     82.3     65.1
  

 

 

   

 

 

 

Net service revenue

     287.3     268.3

Cost of service

     174.9     160.1
  

 

 

   

 

 

 

Gross margin

     112.4     108.2

Provision for doubtful accounts

     5.4     3.1

Asset impairment charge

     1.3     —    

Other operating expenses

     71.3     69.6
  

 

 

   

 

 

 

Operating income

   $ 34.4   $ 35.5
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     2     (1 %) 

Non-Medicare revenue

     26     (2 %) 

Medicare admissions

     (2 %)      2

Total Episodic admissions

     2     4

Total Episodic volume

     5     3

Total admissions

     3     -

Key Statistical Data - Total (2):

    

Medicare:

    

Admissions

     46,421     47,637

Recertifications

     27,896     25,628
  

 

 

   

 

 

 

Total volume

     74,317     73,265

Completed episodes

     73,037     71,855

Visits

     1,273,435     1,230,434

Average revenue per completed episode (3)

   $ 2,858   $ 2,851   

Visits per completed episode (4)

     17.6     17.2

Non-Medicare:

    

Admissions

     27,421     24,309

Recertifications

     12,415     9,673

Visits

     619,745     501,215

Total (2):

    

Visiting Clinician Cost per Visit

   $ 83.88   $ 83.46   

Clinical Manager Cost per Visit

   $ 8.49   $ 9.01   
  

 

 

   

 

 

 

Total Cost per Visit

   $ 92.37   $ 92.47   
  

 

 

   

 

 

 

Visits

     1,893,180     1,731,649

 

7


     For the Year Ended December 31,  
     2017     2016  

Financial Information (in millions):

    

Medicare

   $ 793.3   $ 822.4

Non-Medicare

     308.5     263.1
  

 

 

   

 

 

 

Net service revenue

     1,101.8     1,085.5

Cost of service

     670.9     643.7
  

 

 

   

 

 

 

Gross margin

     430.9     441.8

Provision for doubtful accounts

     17.9     13.8

Asset impairment charge

     1.3     —    

Other operating expenses

     281.9     289.4
  

 

 

   

 

 

 

Operating income

   $ 129.8   $ 138.6
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     (4 %)      2

Non-Medicare revenue

     17     8

Medicare admissions

     (2 %)      3 %  

Total Episodic admissions

     1     4

Total Episodic volume

     3     3

Total admissions

     2     2

Key Statistical Data - Total (2):

    

Medicare:

    

Admissions

     190,132     194,662

Recertifications

     106,774     103,193
  

 

 

   

 

 

 

Total volume

     296,906     297,855

Completed episodes

     290,227     289,862

Visits

     5,067,436     5,124,002   

Average revenue per completed episode (3)

   $ 2,823   $ 2,839   

Visits per completed episode (4)

     17.3     17.5   

Non-Medicare:

    

Admissions

     107,665     98,448   

Recertifications

     46,364     38,618

Visits

     2,347,363     2,050,975

Total (2):

    

Visiting Clinician Cost per Visit

   $ 82.04   $ 81.18   

Clinical Manager Cost per Visit

   $ 8.44   $ 8.53   
  

 

 

   

 

 

 

Total Cost per Visit

   $ 90.48   $ 89.71   
  

 

 

   

 

 

 

Visits

     7,414,799     7,174,977   

(1) Same store information represents the percent increase (decrease) in our Medicare and Non-Medicare revenue, admissions or volume for the period as a percent of the Medicare and Non-Medicare revenue, admissions or volume of the prior period.

(2) Total includes acquisitions.

(3) Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare completed episode of care.

(4) 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.

 

8


Segment Information - Hospice     

 

     For the Three Month Period Ended December 31,  
     2017     2016  

Financial Information (in millions):

    

Medicare

   $ 92.7   $ 80.7

Non-Medicare

     5.5     4.5
  

 

 

   

 

 

 

Net service revenue

     98.2     85.2

Cost of service

     49.9     43.0
  

 

 

   

 

 

 

Gross margin

     48.3     42.2

Provision for doubtful accounts

     1.0     2.7

Other operating expenses

     20.8     18.7
  

 

 

   

 

 

 

Operating income

   $ 26.5   $ 20.8
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     14     14

Non-Medicare revenue

     20     (7 %) 

Hospice admissions

     8     16

Average daily census

     12     13

Key Statistical Data - Total (2):

    

Hospice admissions

     6,371     5,769

Average daily census

     7,162     6,318

Revenue per day, net

   $ 149.12   $ 146.56

Cost of service per day

   $ 75.74   $ 73.91

Average discharge length of stay

     96     99
     For the Year Ended December 31,  
     2017     2016  

Financial Information (in millions):

    

Medicare

   $ 350.7   $ 297.7

Non-Medicare

     20.3     18.3
  

 

 

   

 

 

 

Net service revenue

     371.0     316.0

Cost of service

     184.8     163.1
  

 

 

   

 

 

 

Gross margin

     186.2     152.9

Provision for doubtful accounts

     5.9     5.5

Other operating expenses

     77.5     71.5
  

 

 

   

 

 

 

Operating income

   $ 102.8   $ 75.9
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     17     15

Non-Medicare revenue

     10     9

Hospice admissions

     11     17

Average daily census

     15     16

Key Statistical Data -Total (2):

    

Hospice admissions

     25,381     22,526

Average daily census

     6,820     5,912

Revenue per day, net

   $ 149.04   $ 146.05

Cost of service per day

   $ 74.25   $ 75.36

Average discharge length of stay

     93     96

(1) Same store information represents the percent increase (decrease) in our Medicare and Non-Medicare revenue, Hospice admissions or average daily census for the period as a percent of the Medicare and Non-Medicare revenue, Hospice admissions or average daily census of the prior period.

(2) Total includes acquisitions.

 

9


Segment Information - Personal Care         

 

     For the Three Month Period Ended December 31,  
     2017      2016  

Financial Information (in millions):

     

Medicare

   $ —        $ —    

Non-Medicare

     18.7      12.7
  

 

 

    

 

 

 

Net service revenue

     18.7      12.7

Cost of service

     13.7      9.5
  

 

 

    

 

 

 

Gross margin

     5.0      3.2

Provision for doubtful accounts

     0.6      0.1

Other operating expenses

     4.4      2.8
  

 

 

    

 

 

 

Operating income

   $ 0.0    $ 0.3
  

 

 

    

 

 

 

Key Statistical Data:

     

Billable hours

     782,140      548,703

Clients served

     12,693      7,392

Shifts

     365,360      245,535

Revenue per hour

   $ 23.94    $ 23.16

Revenue per shift

   $ 51.26    $ 51.75

Hours per shift

     2.1      2.2
     For the Year Ended December 31,  
     2017      2016  

Financial Information (in millions):

     

Medicare

   $ —        $ —    

Non-Medicare

     60.9      35.9
  

 

 

    

 

 

 

Net service revenue

     60.9      35.9

Cost of service

     45.0      26.3
  

 

 

    

 

 

 

Gross margin

     15.9      9.6

Provision for doubtful accounts

     1.3      0.2

Other operating expenses

     13.8      7.9
  

 

 

    

 

 

 

Operating income

   $ 0.8    $ 1.5
  

 

 

    

 

 

 

Key Statistical Data:

     

Billable hours

     2,604,794      1,539,093

Clients served

     16,826      10,219

Shifts

     1,195,511      696,956

Revenue per hour

   $ 23.37    $ 23.32

Revenue per shift

   $ 50.92    $ 51.49

Hours per shift

     2.2      2.2

 

10


Segment Information - Corporate

 

     For the Three Month Period Ended December 31,  
     2017      2016  

Financial Information (in millions):

     

Other operating expenses

   $ 28.3    $ 35.5

Depreciation and amortization

     2.9      3.1
  

 

 

    

 

 

 

Total operating expenses before asset impairment charge

     31.2      38.6

Asset impairment charge

     —          4.4
  

 

 

    

 

 

 

Total operating expenses

   $ 31.2    $ 43.0
  

 

 

    

 

 

 
     For the Year Ended December 31,  
     2017      2016  

Financial Information (in millions):

     

Other operating expenses

   $ 113.7    $ 141.9

Depreciation and amortization

     12.5      12.4
  

 

 

    

 

 

 

Total operating expenses before asset impairment charge and Securities Class Action Lawsuit settlement, net

     126.2      154.3

Asset impairment charge

     —          4.4

Securities Class Action Lawsuit settlement, net

     28.7      —    
  

 

 

    

 

 

 

Total operating expenses

   $ 154.9    $ 158.7
  

 

 

    

 

 

 

 

11


AMEDISYS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES

(Amounts in thousands)

(Unaudited)

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”):

 

     For the Three Month Period
Ended December 31,
     For the Year Ended December 31,  
     2017      2016      2017      2016  

Net income (loss) attributable to Amedisys, Inc.

   $ (3,848    $ 8,917    $ 30,301    $ 37,261

Add:

           

Income tax expense

     32,794      5,612      50,118      23,935

Interest expense, net

     1,377      1,583      4,873      5,089

Depreciation and amortization

     3,984      5,016      17,123      19,678

Certain items (1)

     24,414      9,999      61,429      24,559

Interest component of certain items (1)

     (168      (625      (263      (625

Tax component of certain items (1)

     (21,424      —          (21,424      —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA (2) (6)

   $ 37,129    $ 30,502    $ 142,157    $ 109,897
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted Net Service Revenue Reconciliation:

 

     For the Three Month Period
Ended December 31,
     For the Year Ended December 31,  
     2017      2016      2017      2016  

Net service revenue

   $ 404,238    $ 366,296    $ 1,533,680    $ 1,437,454

Add:

           

Certain items (1)

     —          (1,149      6,506      (201
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted net service revenue (3) (6)

   $ 404,238    $ 365,147    $ 1,540,186    $ 1,437,253
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted Net Income Attributable to Amedisys, Inc. Reconciliation:    

 

     For the Three Month Period
Ended December 31,
     For the Year Ended December 31,  
     2017      2016      2017      2016  

Net income (loss) attributable to Amedisys, Inc.

   $ (3,848    $ 8,917    $ 30,301    $ 37,261

Add:

           

Certain items (1)

     23,233      6,114      45,627      14,923
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted net income attributable to Amedisys, Inc. (4) (6)

   $ 19,385    $ 15,031    $ 75,928    $ 52,184
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted Net Income Attributable to Amedisys, Inc. per Diluted Share:    

 

     For the Three Month Period
Ended December 31,
     For the Year Ended December 31,  
     2017      2016      2017      2016  

Net income (loss) attributable to Amedisys, Inc. common stockholders per diluted share

   $ (0.11    $ 0.26    $ 0.88    $ 1.10

Add:

           

Certain items (1)

     0.67      0.18      1.33      0.44
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (5) (6)

   $ 0.56    $ 0.44    $ 2.21    $ 1.55
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) The following details the certain items for the three month periods and years ended December 31, 2017 and 2016:

 

12


Certain Items:    

 

     For the Three Month Period
Ended December 31, 2017
    For the Year Ended
December 31, 2017
 
     (Income) Expense     (Income) Expense  

Certain Items Impacting Net Service Revenue:

    

Florida ZPIC audit

   $ —       $ 6,506

Certain Items Impacting Operating Expenses:

    

Acquisition costs

     48     1,025

Legal fees - non-routine

     358     1,768

Securities Class Action Lawsuit settlement, net

     —         28,712

Restructuring activity

     648     2,318

Data center relocation

     —         940

Asset impairment

     1,323     1,323

Certain Items Impacting Total Other Income (Expense):

    

Legal settlements

     —         (2,014

Miscellaneous, other (income) expense, net

     613     (573

Certain Items Impacting Income Tax Expense:

    

Remeasurement of deferred tax assets and liabilities

     21,424     21,424
  

 

 

   

 

 

 

Total

   $ 24,414   $ 61,429
  

 

 

   

 

 

 

Net of tax

   $ 23,233   $ 45,627
  

 

 

   

 

 

 

Diluted EPS

   $ 0.67   $ 1.33
  

 

 

   

 

 

 
     For the Three Month Period
Ended December 31, 2016
    For the Year Ended
December 31, 2016
 
     (Income) Expense     (Income) Expense  

Certain Items Impacting Net Service Revenue:

    

Reduction of cost report reserve

   $ (1,149   $ (1,149

Third party audit reserve

     —         948

Certain Items Impacting Operating Expenses:

    

HCHB implementation

     1,345     8,371

Acquisition costs

     876     3,384

Legal fees - non-routine

     543     1,992

Frontier litigation

     2,479     2,979

Wage and Hour litigation

     (119     282

Asset impairment

     4,432     4,432

Restructuring activity

     1,976     7,645

Sales/use tax audit reserve

     460     460

Disaster relief

     129     467

Certain Items Impacting Total Other Income (Expense):

    

Sales/use tax audit reserve

     625        625   

Legal settlements

     (280     (2,328

Miscellaneous, other (income) expense, net

     (1,318     (3,549
  

 

 

   

 

 

 

Total

   $ 9,999   $ 24,559
  

 

 

   

 

 

 

Net of tax

   $ 6,114   $ 14,923
  

 

 

   

 

 

 

Diluted EPS

   $ 0.18   $ 0.44
  

 

 

   

 

 

 

 

(2) Adjusted EBITDA is defined as net income (loss) attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization, excluding certain items as described in footnote 1.
(3) Adjusted net service revenue is defined as net service revenue plus certain items as described in footnote 1.
(4) Adjusted net income attributable to Amedisys, Inc. is defined as net income (loss) attributable to Amedisys, Inc. calculated in accordance with GAAP excluding certain items as described in footnote 1.
(5) Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share is defined as diluted income (loss) per share calculated in accordance with GAAP excluding the earnings per share effect of certain items as described in footnote 1.
(6) Adjusted EBITDA, adjusted net service revenue, adjusted net income attributable to Amedisys, Inc. and adjusted net income 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 or other measure calculated in accordance with GAAP. These calculations may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate these non-GAAP financial measures in the same manner.

 

13