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): MAY 7, 2018
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.) |
3854 American Way, Suite A, 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)
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)) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
SECTION 2 FINANCIAL INFORMATION
ITEM 2.02. | RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
On May 7, 2018, Amedisys, Inc. (we, us, our or the Company) issued a press release announcing our financial results for the first quarter ended March 31, 2018. 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 (the Securities Act), 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.
In addition, a copy of the supplemental slides which will be discussed during the Companys earnings call at 11:00 a.m. ET on Tuesday, May 8, 2018 is attached to this report as Exhibit 99.2 and 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 or the Exchange Act.
SECTION 9 FINANCIAL STATEMENTS AND EXHIBITS
ITEM 9.01. | FINANCIAL STATEMENTS AND EXHIBITS |
(d) Exhibits.
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 | ||
Chief Financial Officer | ||
(Principal Accounting Officer) |
DATE: May 7, 2018
Exhibit 99.1
AMEDISYS REPORTS FIRST QUARTER 2018 FINANCIAL RESULTS
AND REAFFIRMS 2018 GUIDANCE
BATON ROUGE, Louisiana (May 7, 2018) Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three month period ended March 31, 2018.
Three Month Periods Ended March 31, 2018 and 2017
| Net service revenue increased $34.6 million to $399.3 million compared to $364.7 million in 2017(1). |
| Net income attributable to Amedisys, Inc. of $27.2 million compared to $15.1 million in 2017. |
| Net income attributable to Amedisys, Inc. per diluted share of $0.79 compared to $0.44 in 2017. |
Adjusted Quarterly Results*
| Adjusted EBITDA of $41.7 million compared to $32.0 million in 2017. |
| Adjusted net income attributable to Amedisys, Inc. of $27.3 million compared to $16.0 million in 2017. |
| Adjusted net income attributable to Amedisys, Inc. per diluted share of $0.79 compared to $0.47 in 2017. |
* | See pages 8 and 9 for the definition and reconciliations of non-GAAP financial measures to GAAP measures. |
(1) | Subsequent to our adoption of Accounting Standards Updates 2014-09 and 2015-14 on January 1, 2018, using the full retrospective method, all amounts previously classified as provision for doubtful accounts are now classified as implicit price concessions in determining the transaction price of our net service revenue. |
Paul B. Kusserow, President and Chief Executive Officer stated, I am proud of our first quarter results as once again we have made great progress in all four key areas of our strategy. Total home health admissions and volumes are moving in the right direction as our business development staffing strategy takes hold. Continued strong performance from our hospice segment, personal care growth and disciplined cost controls have helped to deliver significant increases in revenue, EBITDA and earnings per share as compared to the first quarter of 2017. We have once again improved our position as an industry leader in quality, having increased our STARs score for the twelfth straight quarter. Our continued focus on our employees can be seen in our stabilized turnover rates and the investment we have made in operational efficiency has resulted in increased productivity from our clinical staff. We will continue to focus on organic growth in all three of lines of business throughout the remainder of 2018 and have a balance sheet that provides flexibility to execute upon a range of capital allocation priorities. A special thanks to our nearly 18,000 employees that helped to deliver such an impressive quarter.
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 SECs 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 Tuesday, May 8, 2018, at 11:00 a.m. ET to discuss its first quarter results. To participate on the conference call, please call before 11:00 a.m. ET to either (877) 524-8416 (Toll-Free) or (412) 902-1028 (Toll). A replay of the conference call will be available through June 8, 2018 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13679111.
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 attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization, excluding certain items; (2) adjusted net income attributable to Amedisys, Inc., defined as net income attributable to Amedisys, Inc. excluding certain items; and (3) adjusted net income attributable to Amedisys, Inc. per diluted share, defined as net income 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 companys 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. We partner with 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 420 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 and clients 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 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.
1
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 |
2
AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Amounts in thousands, except per share data)
(Unaudited)
For the Three Month Period Ended March 31, | ||||||||
2018 | 2017 | |||||||
Net service revenue |
$ | 399,262 | $ | 364,661 | ||||
Cost of service, excluding depreciation and amortization |
238,309 | 216,329 | ||||||
General and administrative expenses: |
||||||||
Salaries and benefits |
75,631 | 74,459 | ||||||
Non-cash compensation |
4,044 | 3,874 | ||||||
Other |
41,680 | 40,417 | ||||||
Depreciation and amortization |
3,593 | 4,417 | ||||||
|
|
|
|
|||||
Operating expenses |
363,257 | 339,496 | ||||||
|
|
|
|
|||||
Operating income |
36,005 | 25,165 | ||||||
Other income (expense): |
||||||||
Interest income |
120 | 19 | ||||||
Interest expense |
(1,703 | ) | (1,068 | ) | ||||
Equity in earnings (loss) from equity method investments |
1,860 | (106 | ) | |||||
Miscellaneous, net |
601 | 1,112 | ||||||
|
|
|
|
|||||
Total other income (expense), net |
878 | (43 | ) | |||||
|
|
|
|
|||||
Income before income taxes |
36,883 | 25,122 | ||||||
Income tax expense |
(9,563 | ) | (9,923 | ) | ||||
|
|
|
|
|||||
Net income |
27,320 | 15,199 | ||||||
Net income attributable to noncontrolling interests |
(161 | ) | (69 | ) | ||||
|
|
|
|
|||||
Net income attributable to Amedisys, Inc. |
$ | 27,159 | $ | 15,130 | ||||
|
|
|
|
|||||
Basic earnings per common share: |
||||||||
Net income attributable to Amedisys, Inc. common stockholders |
$ | 0.80 | $ | 0.45 | ||||
Weighted average shares outstanding |
33,971 | 33,443 | ||||||
Diluted earnings per common share: |
||||||||
Net income attributable to Amedisys, Inc. common stockholders |
$ | 0.79 | $ | 0.44 | ||||
Weighted average shares outstanding |
34,592 | 34,073 |
3
AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Amounts in thousands, except share data)
March 31, 2018 | December 31, 2017 | |||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: |
||||||||
Cash and cash equivalents |
$ | 120,005 | $ | 86,363 | ||||
Patient accounts receivable, net |
192,936 | 201,196 | ||||||
Prepaid expenses |
12,430 | 7,329 | ||||||
Other current assets |
18,148 | 16,268 | ||||||
|
|
|
|
|||||
Total current assets |
343,519 | 311,156 | ||||||
Property and equipment, net of accumulated depreciation of $130,877 and $146,814 |
28,213 | 31,122 | ||||||
Goodwill |
322,199 | 319,949 | ||||||
Intangible assets, net of accumulated amortization of $31,288 and $30,610 |
45,382 | 46,061 | ||||||
Deferred income taxes |
53,119 | 56,064 | ||||||
Other assets, net |
49,856 | 49,130 | ||||||
|
|
|
|
|||||
Total assets |
$ | 842,288 | $ | 813,482 | ||||
|
|
|
|
|||||
LIABILITIES AND EQUITY | ||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 22,966 | $ | 25,384 | ||||
Payroll and employee benefits |
88,585 | 89,936 | ||||||
Accrued expenses |
88,842 | 89,104 | ||||||
Current portion of long-term obligations |
10,417 | 10,638 | ||||||
|
|
|
|
|||||
Total current liabilities |
210,810 | 215,062 | ||||||
Long-term obligations, less current portion |
75,782 | 78,203 | ||||||
Other long-term obligations |
6,138 | 3,791 | ||||||
|
|
|
|
|||||
Total liabilities |
292,730 | 297,056 | ||||||
|
|
|
|
|||||
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; 35,861,469 and 35,747,134 shares issued; and 34,056,627 and 33,964,767 shares outstanding |
35 | 35 | ||||||
Additional paid-in capital |
575,926 | 568,780 | ||||||
Treasury stock at cost, 1,804,842 and 1,782,367 shares of common stock |
(55,019 | ) | (53,713 | ) | ||||
Accumulated other comprehensive income |
15 | 15 | ||||||
Retained earnings |
27,363 | 204 | ||||||
|
|
|
|
|||||
Total Amedisys, Inc. stockholders equity |
548,320 | 515,321 | ||||||
Noncontrolling interests |
1,238 | 1,105 | ||||||
|
|
|
|
|||||
Total equity |
549,558 | 516,426 | ||||||
|
|
|
|
|||||
Total liabilities and equity |
$ | 842,288 | $ | 813,482 | ||||
|
|
|
|
4
AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING, NET
(Amounts in thousands, except statistical information)
(Unaudited)
For the Three Month Period Ended March 31, | ||||||||
2018 | 2017 | |||||||
Cash Flows from Operating Activities: |
||||||||
Net income |
$ | 27,320 | $ | 15,199 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
3,593 | 4,417 | ||||||
Non-cash compensation |
4,044 | 3,874 | ||||||
401(k) employer match |
2,567 | 2,227 | ||||||
Loss (gain) on disposal of property and equipment |
563 | (16 | ) | |||||
Deferred income taxes |
2,945 | 9,445 | ||||||
Equity in (earnings) loss from equity method investments |
(1,860 | ) | 106 | |||||
Amortization of deferred debt issuance costs |
178 | 185 | ||||||
Return on equity investment |
625 | 150 | ||||||
Changes in operating assets and liabilities, net of impact of acquisitions: |
||||||||
Patient accounts receivable |
8,260 | (6,152 | ) | |||||
Other current assets |
(6,982 | ) | (3,403 | ) | ||||
Other assets |
46 | (990 | ) | |||||
Accounts payable |
(1,523 | ) | 93 | |||||
Accrued expenses |
(1,807 | ) | 1,386 | |||||
Other long-term obligations |
2,348 | 576 | ||||||
|
|
|
|
|||||
Net cash provided by operating activities |
40,317 | 27,097 | ||||||
|
|
|
|
|||||
Cash Flows from Investing Activities: |
||||||||
Proceeds from sale of deferred compensation plan assets |
462 | 565 | ||||||
Proceeds from the sale of property and equipment |
5 | | ||||||
Purchase of investment |
| (256 | ) | |||||
Purchases of property and equipment |
(1,462 | ) | (4,385 | ) | ||||
Acquisitions of businesses, net of cash acquired |
(2,250 | ) | (4,099 | ) | ||||
|
|
|
|
|||||
Net cash used in investing activities |
(3,245 | ) | (8,175 | ) | ||||
|
|
|
|
|||||
Cash Flows from Financing Activities: |
||||||||
Proceeds from issuance of stock upon exercise of stock options and warrants |
125 | 653 | ||||||
Proceeds from issuance of stock to employee stock purchase plan |
597 | 612 | ||||||
Shares withheld upon stock vesting |
(1,305 | ) | (758 | ) | ||||
Non-controlling interest distribution |
(28 | ) | (42 | ) | ||||
Principal payments of long-term obligations |
(2,819 | ) | (1,250 | ) | ||||
|
|
|
|
|||||
Net cash used in financing activities |
(3,430 | ) | (785 | ) | ||||
|
|
|
|
|||||
Net increase in cash and cash equivalents |
33,642 | 18,137 | ||||||
Cash and cash equivalents at beginning of period |
86,363 | 30,197 | ||||||
|
|
|
|
|||||
Cash and cash equivalents at end of period |
$ | 120,005 | $ | 48,334 | ||||
|
|
|
|
|||||
Supplemental Disclosures of Cash Flow Information: |
||||||||
Cash paid for interest |
$ | 1,065 | $ | 706 | ||||
|
|
|
|
|||||
Cash paid for income taxes, net of refunds received |
$ | 2,813 | $ | 284 | ||||
|
|
|
|
|||||
Days revenue outstanding, net (1) |
41.4 | 40.5 |
(1) | Our calculation of days revenue outstanding, net at March 31, 2018 and 2017 is derived by dividing our ending net patient accounts receivable by our average daily net patient revenue for the three month period ended March 31, 2018 and 2017, respectively. |
5
AMEDISYS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Amounts in millions, except statistical information)
(Unaudited)
Segment Information - Home Health
For the Three Month Period Ended March 31, | ||||||||
2018 | 2017 | |||||||
Financial Information (in millions): |
||||||||
Medicare |
$ | 205.0 | $ | 198.7 | ||||
Non-Medicare |
79.1 | 68.9 | ||||||
|
|
|
|
|||||
Net service revenue |
284.1 | 267.6 | ||||||
Cost of service |
174.4 | 163.0 | ||||||
|
|
|
|
|||||
Gross margin |
109.7 | 104.6 | ||||||
Other operating expenses |
68.8 | 68.9 | ||||||
|
|
|
|
|||||
Operating income |
$ | 40.9 | $ | 35.7 | ||||
|
|
|
|
|||||
Same Store Growth (1): |
||||||||
Medicare revenue |
5 | % | (3 | %) | ||||
Non-Medicare revenue |
14 | % | 11 | % | ||||
Total admissions |
4 | % | 2 | % | ||||
Total volume (2) |
7 | % | 1 | % | ||||
Total Episodic admissions (3) |
3 | % | 3 | % | ||||
Total Episodic volume (4) |
6 | % | 2 | % | ||||
Key Statistical Data - Total (5): |
||||||||
Medicare: |
||||||||
Admissions |
49,455 | 49,628 | ||||||
Recertifications |
27,236 | 25,043 | ||||||
|
|
|
|
|||||
Total volume |
76,691 | 74,671 | ||||||
Completed episodes |
72,836 | 71,864 | ||||||
Visits |
1,314,126 | 1,263,098 | ||||||
Average revenue per completed episode (6) |
$ | 2,792 | $ | 2,782 | ||||
Visits per completed episode (7) |
17.2 | 16.9 | ||||||
Non-Medicare: |
||||||||
Admissions |
29,889 | 27,333 | ||||||
Recertifications |
12,432 | 10,224 | ||||||
|
|
|
|
|||||
Total volume |
42,321 | 37,557 | ||||||
Visits |
660,933 | 555,548 | ||||||
Total (5): |
||||||||
Visiting Clinician Cost per Visit |
$ | 80.34 | $ | 81.08 | ||||
Clinical Manager Cost per Visit |
$ | 7.99 | $ | 8.53 | ||||
|
|
|
|
|||||
Total Cost per Visit |
$ | 88.33 | $ | 89.61 | ||||
|
|
|
|
|||||
Visits |
1,975,059 | 1,818,646 |
(1) | Same store information represents the percent increase (decrease) in our Medicare, Non-Medicare, Total and Episodic revenue, admissions or volume for the period as a percent of the Medicare, Non-Medicare, Total and Episodic revenue, admissions or volume of the prior period. |
(2) | Total volume includes all admissions and recertifications. |
(3) | Total Episodic admissions include admissions for Medicare and Non-Medicare payors that bill on a 60-day episode of care basis. |
(4) | Total Episodic volume includes admissions and recertifications for Medicare and Non-Medicare payors that bill on a 60-day episode of care basis. |
(5) | Total includes acquisitions. |
(6) | Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare completed episode of care. |
(7) | 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
Segment Information - Hospice
For the Three Month Period Ended March 31, | ||||||||
2018 | 2017 | |||||||
Financial Information (in millions): |
||||||||
Medicare |
$ | 91.8 | $ | 80.7 | ||||
Non-Medicare |
5.5 | 2.9 | ||||||
|
|
|
|
|||||
Net service revenue |
97.3 | 83.6 | ||||||
Cost of service |
50.1 | 42.9 | ||||||
|
|
|
|
|||||
Gross margin |
47.2 | 40.7 | ||||||
Other operating expenses |
20.2 | 18.3 | ||||||
|
|
|
|
|||||
Operating income |
$ | 27.0 | $ | 22.4 | ||||
|
|
|
|
|||||
Same Store Growth (1): |
||||||||
Medicare revenue |
12 | % | 17 | % | ||||
Non-Medicare revenue |
84 | % | (23 | )% | ||||
Hospice admissions |
5 | % | 20 | % | ||||
Average daily census |
12 | % | 16 | % | ||||
Key Statistical Data - Total (2): |
||||||||
Hospice admissions |
6,933 | 6,505 | ||||||
Average daily census |
7,214 | 6,365 | ||||||
Revenue per day, net |
$ | 149.80 | $ | 145.99 | ||||
Cost of service per day |
$ | 77.17 | $ | 75.03 | ||||
Average discharge length of stay |
97 | 92 |
(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. |
Segment Information - Personal Care
For the Three Month Period Ended March 31, | ||||||||
2018 | 2017 | |||||||
Financial Information (in millions): |
||||||||
Medicare |
$ | | $ | | ||||
Non-Medicare |
17.9 | 13.5 | ||||||
|
|
|
|
|||||
Net service revenue |
17.9 | 13.5 | ||||||
Cost of service |
13.8 | 10.4 | ||||||
|
|
|
|
|||||
Gross margin |
4.1 | 3.1 | ||||||
Other operating expenses |
3.3 | 3.3 | ||||||
|
|
|
|
|||||
Operating income (loss) |
$ | 0.8 | $ | (0.2 | ) | |||
|
|
|
|
|||||
Key Statistical Data: |
||||||||
Billable hours |
749,953 | 588,216 | ||||||
Clients served |
12,536 | 8,543 | ||||||
Shifts |
348,166 | 265,117 | ||||||
Revenue per hour |
23.85 | 22.97 | ||||||
Revenue per shift |
51.36 | 50.95 | ||||||
Hours per shift |
2.2 | 2.2 |
Segment Information - Corporate
For the Three Month Period Ended March 31, | ||||||||
2018 | 2017 | |||||||
Financial Information (in millions): |
||||||||
Other operating expenses |
$ | 30.2 | $ | 29.5 | ||||
Depreciation and amortization |
2.5 | 3.2 | ||||||
|
|
|
|
|||||
Total operating expenses |
$ | 32.7 | $ | 32.7 | ||||
|
|
|
|
7
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 March 31, | ||||||||
2018 | 2017 | |||||||
Net income attributable to Amedisys, Inc. |
$ | 27,159 | $ | 15,130 | ||||
Add: |
||||||||
Income tax expense |
9,563 | 9,923 | ||||||
Interest expense, net |
1,583 | 1,049 | ||||||
Depreciation and amortization |
3,593 | 4,417 | ||||||
Certain items (1) |
188 | 1,466 | ||||||
Interest component of certain items (1) |
(383 | ) | | |||||
|
|
|
|
|||||
Adjusted EBITDA (2) (5) |
$ | 41,703 | $ | 31,985 | ||||
|
|
|
|
Adjusted Net Income Attributable to Amedisys, Inc. Reconciliation:
For the Three Month Period Ended March 31, | ||||||||
2018 | 2017 | |||||||
Net income attributable to Amedisys, Inc. |
$ | 27,159 | $ | 15,130 | ||||
Add: |
||||||||
Certain items (1) |
139 | 887 | ||||||
|
|
|
|
|||||
Adjusted net income attributable to Amedisys, Inc. (3) (5) |
$ | 27,298 | $ | 16,017 | ||||
|
|
|
|
Adjusted Net Income Attributable to Amedisys, Inc. per Diluted Share:
For the Three Month Period Ended March 31, | ||||||||
2018 | 2017 | |||||||
Net income attributable to Amedisys, Inc. common stockholders per diluted share |
$ | 0.79 | $ | 0.44 | ||||
Add: |
||||||||
Certain items (1) |
| 0.03 | ||||||
|
|
|
|
|||||
Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (4) (5) |
$ | 0.79 | $ | 0.47 | ||||
|
|
|
|
(1) | The following details the certain items for the three month periods ended March 31, 2018 and 2017: |
Certain Items:
For the Three Month Period Ended March 31, 2018 |
For the Three Month Period Ended March 31, 2017 |
|||||||
(Income) Expense | (Income) Expense | |||||||
Certain Items Impacting Operating Expenses: |
||||||||
Acquisition costs |
$ | 435 | $ | 682 | ||||
Legal fees - non-routine |
562 | 123 | ||||||
Data center relocation |
| 714 | ||||||
Certain Items Impacting Total Other Income (Expense): |
||||||||
Legal settlements |
| (674 | ) | |||||
Miscellaneous, other (income) expense, net |
(809 | ) | 621 | |||||
|
|
|
|
|||||
Total |
$ | 188 | $ | 1,466 | ||||
|
|
|
|
|||||
Net of tax |
$ | 139 | $ | 887 | ||||
|
|
|
|
|||||
Diluted EPS |
$ | | $ | 0.03 | ||||
|
|
|
|
8
(2) | Adjusted EBITDA is defined as net income 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 income attributable to Amedisys, Inc. is defined as net income attributable to Amedisys, Inc. calculated in accordance with GAAP excluding certain items as described in footnote 1. |
(4) | Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share is defined as diluted income per share calculated in accordance with GAAP excluding the earnings per share effect of certain items as described in footnote 1. |
(5) | Adjusted EBITDA, 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. |
9
1 1 Amedisys First Quarter 2018 Earnings Call Supplemental Slides May 8 2018 Exhibit 99.2 th |
2 This presentation may include forward-looking statements as defined by the Private
Securities Litigation Reform Act of 1995. These
forward-looking statements are based upon
current expectations and assumptions about our business that are subject to a variety of risks and uncertainties that could cause actual results to differ materially from
those described in this presentation. You should not rely on
forward-looking statements as a prediction of
future events. Additional information regarding
factors that could cause actual results to differ materially from those discussed in any forward-looking statements are described in reports and
registration statements we file with the SEC,
including our Annual Report on Form 10-K and
subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, copies of which are available on the Amedisys internet website http://www.amedisys.com or by contacting the Amedisys Investor Relations department at (225) 292-2031.
We disclaim any obligation to update any 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. www.amedisys.com NASDAQ: AMED We encourage everyone to visit the Investors Section of our website at www.amedisys.com, where we have posted additional important information such as press releases, profiles concerning our business and clinical operations and control processes, and SEC filings. Forward-looking statements |
3 Our Key Areas of Focus Strategic areas of focus for 2018 and beyond 1 Organic Growth 3 Clinical Initiatives 4 Impact Capacity and Productivity 5 M&A 2 Recruiting / Retention *Note: Home Health same store volume is admissions plus recertifications Hospice: Continued
impressive growth rate
(Admissions +5%,
ADC +12%) for 1Q18
Home Health*:
Total same store
admission +4%, same
store episodic
admission +3%, total
same store volume
+7%, same store
episodic volume +6%
for 1Q18
Personal Care: Double digit growth in billable hours / quarter +27% Fifth straight quarter of increased BD FTEs ending 1Q18 with 753 Targeting industry leading employee retention amongst all employee categories Focus on reduction of clinical turnover Quality: Amedisys improves STARS scores to 4.38 (July18 preview) with 93% of providers at 4+ STAR rating 72 Amedisys providers rated at 5-Stars in the July18 Preview Continued focus on reduction of 30-Day and 60-Day ACH rate reduction Since April 2017, skilled nursing productivity up 8%, PT productivity up 11% and OT productivity up ~1% - helping to drive down CPV Director of Operations (DOO) leadership training underway Focusing on optimizing RN / LPN & PT / PTA staffing ratio Preference to acquire assets in Hospice, Personal Care tuck- ins, and opportunistic regional acquisitions in Home Health Unlevered balance sheet (0.2x) gives us access to capital Pipeline strong but price expectations challenging will continue to remain disciplined on pricing |
4 Highlights and Summary Financial Results (Adjusted): 1Q 2018 (1) Same store Home Health total admissions up (+4%). Hospice (+5% same store admissions) and Personal Care (+27%
billable hours) continue their strong growth
Amedisys
Consolidated
Revenue Growth: +9% EBITDA: $42M (+30%) EBITDA Margin: 10.4% EPS: $0.79 (+68%) 1Q18 Net debt: ($32.1M) Leverage ratio: (0.2)x (net) CFFO: $40.3M Free cash flow (4) : $36.2M DSO: 41.4 (vs. Q417 of 44.0) Balance Sheet & Cash Flow 1Q18 Same Store Admissions: Total: +4% Episodic (2) : +3% Same Store Volume (3) : Total: +7% Episodic (2) : +6% Other Statistics: Revenue per Episode: $2,792 (+$10) Total Cost per Visit: (1.4%) Medicare Recert Rate: +260 bps Home Health Growth Metrics (5) : Billable hours/quarter: +27% Clients served: +47% Personal Care Same Store Volume: Admissions: +5% ADC: +12% Other Statistics: Revenue per Day: $149.80 (+2.6%) Cost per day: +2.9% Hospice 1Q18 1Q18 1Q18 Adjusted Financial Results(1) 1Q18 1. The financial results for the three-month periods ended March 31, 2017 and March 31, 2018 are adjusted for
certain items and should be considered a non-GAAP financial measure. A reconciliation of these non-GAAP financial measures is included in the corresponding 8-K detailing quarterly results
for each respective reporting period. 2.
Episodic
admissions
and
volume
Includes
Medicare
and
non-Medicare
payors
that
bill
on
a
60-day
episode
of
care
basis.
3.
Same Store volume
Includes admissions and recertifications.
4.
Free cash flow defined as cash flow from operations less routine
capital expenditures and required debt repayments.
5.
Includes acquisitions.
$ in Millions, except EPS
1Q17
1Q18
% Change
Home Health
267.5
284.1
6.2%
Hospice
83.6
97.3
16.4%
Personal Care
13.5
17.9
32.6%
Total Revenue
364.7
$
399.3
$
9.5%
Gross Margin %
40.7%
40.3%
Adjusted EBITDA
32.0
41.7
30.3%
8.8%
10.4%
Adjusted EPS
$0.47
$0.79
68.1%
Free cash flow
(5)
$23.4
$36.2
54.7% |
5 5 OUR REVENUE SOURCES Medicare FFS: Paid episodically over a 60 day
episode
Private Episodic: MA and Commercial plans
who pay us over a 60 day episode. Generally at
rates ~90%
100% of Medicare
Per Visit: Managed care, Medicaid and private
payors reimbursing us per visit provided
Per Day Reimbursement:
Routine Care: Patient at home with
symptoms controlled
99% of the Hospice
care AMED provides
Continuous Care: Patient at home with
uncontrolled symptoms
Inpatient Care: Patient in facility with
uncontrolled symptoms
Respite Care: Patient at facility with
symptoms controlled
71.1%
24.4%
4.5%
Amedisys Consolidated Revenue
Home Health
Hospice
Personal Care
72.1%
11.0%
16.9%
Home Health Revenue
Medicare FFS
Private Episodic
Per Visit
94.4%
5.6%
Hospice Revenue
Medicare FFS
Private |
6 Home Health and Hospice Segment (Adjusted) 1Q 2018 ( 1) Revenue per Episode up +$10 y/y Recert rate up +260 bps y/y Y/Y CPV decrease of (1.4%) in Q118 despite planned wage
increases
Home Health Highlights
Same store average daily census (ADC) up 12% in Q118
Net revenue per day up 3% y/y Two providers over cap as of Q118: ~ $200k liability
Hospice Highlights
1.
The financial results for the three-month periods ended
March 31, 2017 and March 31, 2018 are adjusted for certain items and should be considered a non-GAAP financial measure. A reconciliation of these non-GAAP financial measures is included in the corresponding 8-K detailing quarterly
results for each respective reporting period.
2.
Segment EBITDA does not include any corporate G&A
expenses. 3.
Same store admissions and volume exclude 7 closed and consolidated
care centers in FL during 2017. Home health growth
continues to move in the right direction; Hospice continues with double digit ADC growth $ in Millions 1Q17 1Q18 Medicare 80.7 91.8 Non-Medicare Hospice Revenue $83.6 $97.3 Gross Margin % 48.6% 48.5% Segment EBITDA (2) $22.6 $27.2 27.0% 28.0% Operating Statistics Admit growth - same store 20% 5% ADC growth - same store 16% 12% Admits 6,505 6,933 ADC 6,365 7,214 Avg. discharge length of stay 92 97 Revenue per day (net) $145.99 $149.80 Cost per day $75.03 $77.17 HOSPICE HOME HEALTH $ in Millions 1Q17 1Q18 Medicare 198.7 205.0 Non-Medicare 68.8 79.2 Home Health Revenue $267.5 $284.1 Gross Margin % 39.1% 38.6% Segment EBITDA (2) $36.6 $41.6 13.7% 14.6% Operating Statistics Same Store Growth (3) Total Admit 3% 4% Total Volume 2% 7% Episodic Admit 4% 3% Episodic Volume 3% 6% Revenue per Episode 2,782 $ 2,792 $ Recert Rate 34.8% 37.4% Total Cost per visit $89.61 $88.33 2.9 5.5 |
7 $ in Millions 1Q17 2Q17 3Q17 4Q17 1Q18 Corp G&A 1Q17 2Q17 3Q17 4Q17 1Q18 Home Health Segment 68.0 68.2 68.2 69.0 67.1 Salary and Benefits 13.9 14.1 13.6 14.7 14.9 Acquisitions - Tenet - 0.7 1.1 1.0 1.0 Other 11.0 10.5 9.4 9.9 11.5 Home Health Segment - Total 68.0 68.9 69.3 70.0 68.1 Corp. G&A Subtotal 24.9 24.6 23.0 24.6 26.4 % of HH Revenue 25.4% 25.5% 25.6% 24.8% 24.0% Non-cash comp 2.4 3.0 2.7 3.0 2.7 Adjusted corporate G&A 27.3 27.6 25.7 27.6 29.1 Hospice Segment 18.0 18.8 18.6 20.0 19.5 Acquisitions - Tenet - 0.2 0.4 0.5 0.4 Hospice Segment - Total 18.0 19.0 19.0 20.5 19.9 % of HSP Revenue 21.5% 21.0% 19.8% 20.9% 20.5% Personal Care Segment 3.1 2.8 2.8 3.3 2.2 Acquisitions - HomeStaff & Intercity 0.2 0.2 0.2 1.0 1.0
Personal Care Segment - Total
3.3
3.0
3.0
4.3
3.2
% of PC Revenue
24.4%
21.0%
21.9%
23.8%
17.9%
Corporate Expenses
27.3
27.6
25.7
27.6
29.1
Acquisition Integration Costs
0.6
0.8
0.1
0.2
0.1
Total Corporate
27.9
28.4
25.8
27.8
29.2
% of Total Revenue
7.7%
7.6%
6.8%
7.0%
7.3%
Total
117.2
119.3
117.1
122.6
120.4
% of Total Revenue
32.1%
31.8%
30.8%
30.8%
30.2%
General & Administrative Expenses Adjusted (1,2) Notes: Year over year total G&A as a percentage of revenue decreased 190 basis points
Home Health segment G&A: 140 bps y/y decrease as % of revenue
Hospice segment G&A: 100 bps decrease y/y as % of revenue
Personal Care segment G&A: 650 bps decrease y/y as % of revenue (Personal Care G&A reflects reclassification of certain support
personnel to corporate in 1Q18)
Corporate G&A: 40 bps decrease y/y as % of total revenue
G&A has increased $3.2M in 1Q18 vs. 1Q17: Mainly driven by planned wage increases 1. The financial results for the three-month periods ended March 31, 2017, June 30, 2017, September 30, 2017, December 31, 2017 and March 31,
2018 are adjusted for certain items and should be considered a
non-GAAP financial measure. A reconciliation of these non-GAAP financial measures is included in the corresponding 8-K detailing quarterly results for each respective reporting period.
2. Adjusted G&A expenses do not include depreciation and amortization. Impact of G&A cost control materializing as operational efficiencies are realized
32.1% 31.8% 30.8% 30.8% 30.2% 29.0% 29.5% 30.0% 30.5% 31.0% 31.5% 32.0% 32.5% 1Q17 2Q17 3Q17 4Q17 1Q18 Total G&A as a Percent of Revenue G&A as a Percent of Revenue |
8 Star scores continue to trend upwards: Among industry leaders Note: Top Competitor Avg weighted by CCN count and include LHC, Kindred, AFAM, HLS and
BKD Metric
JAN 18 Release APR 18 Release JUL 18 PREVIEW Quality of Patient Care 4.22 4.30 4.38 Entities at 4+ Stars 88% 89% 93% Metric OCT 17 Release JAN 18 Release APR 18 Release Patient Satisfaction Star 3.56 3.85 3.94 Performance Over Industry +6% +7% +7% Quality of Patient Care (QPC) Patient Satisfaction (PS) Amedisys maintains a 4-Star average in the July 2018 HHC preview with 93% of our providers at 4+ Stars and 64% at
4.5+ Stars STAR score improvement for the twelfth consecutive quarter (from initial Jul 15 release to Jul 18 preview) 37 Amedisys providers (representing 72 care centers) rated at 5-Stars in the July 2018 preview
AMED received ~$250K in bonus payments related to Value Based Purchasing (VBP) during 1Q18
QPC Industry Performance
3.00 3.50 4.00 4.50 Jul 15 Oct 15 Jan 16Apr 16 Jul 16 Oct 16 Jan 17Apr 17 Jul 17 Oct 17 Jan 18Apr 18 Jul 18 QPC Top Competitor AMED QPC Score QPC Industry Avg PS Industry Performance *Scoring methodology changed dropped entire industrys PS STAR scores 3.00 3.50 4.00 4.50 Jan 16 Apr 16 Jul 16 Oct 16 Jan 17 Apr 17 Jul 17 Oct 17 Jan 18 Apr 18 PS Top Competitor AMED PS Score PS Industry Avg |
9 Hospice Quality: Amedisys Hospice Continues to Move Towards Best- in-Class Hospice Quality 99.9% 98.3% 98.4% 96.0% 99.4% 96.9% 98.9% 98.3% 98.6% 94.5% 94.8% 81.5% 97.6% 95.2% 93.6% 93.7% 70.0% 80.0% 90.0% 100.0% Treatment Preferences Beliefs & Values Addressed Pain Screening Pain Assessment Dyspnea Screening Dyspnea Treatment Patient Treated with an Opioid Who Are Given a Bowel Regimen HIS Rollup/ Average* Hospice Item Set (HIS) Preview - May 2018 Jul 2016 - Jun 2017 Discharges AMED CMS NAT 80.4% 77.8% 90.1% 89.4% 73.9% 75.0% 79.4% 83.9% 81.2% 80.0% 78.0% 91.0% 89.0% 75.0% 75.0% 81.0% 85.0% 81.0% 65.0% 75.0% 85.0% 95.0% Communication Timely Care Treat with Respect Emo / Rel Support Help for Symptoms Hospice Training Rating of Hospice Care Willingness to Recommend CAHPS Roll-Up/ Average* Hospice CAHPS Preview - May 2018 Jul 2015 - Jun 2017 Discharges AMED CMS NAT |
10 Components 1Q17 4Q17 1Q18 YoY Variance Detail Mitigation Plan Salaries $61.48 $61.80 $60.93 ($0.55) YoY decrease driven by increased productivity Staffing mix optimization, productivity and scheduling improvement initiatives in place helped us overcome planned salary increases Contractors $2.35 $2.93 $2.93 $0.58 YoY increased demand due to increasing volumes Focused efforts on filling positions with full-time clinicians Benefits $10.09 $12.35 $9.84 ($0.25) Sequential decline driven by seasonality of health insurance claims Focus on cost containment and spend optimization with specific focus on high cost claims Transportation & Supplies $7.16 $6.80 $6.64 ($0.52) YoY decrease primarily due to transportation costs More effective medical supply contracting cost initiatives are underway *Visiting Staff CPV $81.08 $83.88 $80.34 ($0.74) Clinical Managers $8.53 $8.49 $7.99 ($0.54) Fixed cost associated with non- visiting clinicians Unit cost reduced as volume increases Total CPV $89.61 $92.37 $88.33 ($1.28) Operational Excellence: Cost Per Visit (CPV) Total CPV decreased due to improvement in clinician productivity
*Note: Direct comparison with industry competitors CPV calculation
$25.00 $50.00 $75.00 $100.00 1Q17 4Q17 1Q18 Cost Per Visit (CPV) Salaries Contractors Benefits Transportation $81.08 $83.88 $80.34 |
11 Driving Top Line Growth All three lines of business continue to grow. Hospice drives another quarter of double digit ADC growth
and Home Health total same store volume continue to improve year
over year Volume
*Total Home Health Same Store Volumes exclude 7
closed and consolidated care centers in Florida in 2017
Hospice ADC Personal Care Total Hours / Quarter 1.6% 3.1% 5.8% 7.4% 6.7% -1.0% 1.0% 3.0% 5.0% 7.0% 9.0% 50,000 100,000 150,000 1Q17 2Q17 3Q17 4Q17 1Q18 YoY Growth 15.6% 16.2% 14.1% 12.2% 11.9% 0.0% 5.0% 10.0% 15.0% 20.0% 0 2,000 4,000 6,000 8,000 10,000 1Q17 2Q17 3Q17 4Q17 1Q18 ADC YoY Growth 0 200,000 400,000 600,000 800,000 1,000,000 1Q17 2Q17 3Q17 4Q17 1Q18 Billable Hours Home Health Total Same Store Volume* |
12 Debt and Liquidity Metrics Our debt levels remain very low at (0.2x) net leverage ratio, providing us ample flexibility and available
liquidity for strategic initiatives and inorganic growth
opportunities 1.
Net debt defined as total debt outstanding ($88M) less cash balance
($120M). 2.
Leverage ratio (net) is defined as net debt divided by last twelve months adjusted
EBITDA ($152M). 3.
Liquidity defined as the sum of cash balance and available revolving line of
credit. Credit facility and cash provide significant
capital for accretive acquisitions and/or
other capital deployment options
As of:
Outstanding Debt
03/31/18
Term Loan
87.5
Outstanding Revolver / Other Notes Payable
0.4
Total Debt Outstanding
87.9
Less: Deferred Finance Fees
(1.7)
Total Debt - Balance Sheet
86.2
Total Debt Outstanding
87.9
Less: Cash
(120.0)
Net Debt
(1)
(32.1)
Leverage Ratio (net)
(2)
(0.2)
As of:
Credit Facility
03/31/18
Revolver Size
200.0
Oustanding Revolver
-
Letters of Credit
37.7
Available Revolver
162.3
Plus: Cash
120.0
Total Liquidity
(3)
282.3 |
13 Cash Flow Statement Highlights (1) $36.2M in free cash flow for the quarter, with $2.3M in capital deployed to M&A opportunities
1. Free cash flow defined as cash flow from operations less routine capital expenditures and required debt repayments.
$ in Millions
1Q17
2Q17
3Q17
4Q17
1Q18
GAAP Net Income
15.2
4.5
14.7
(3.7)
27.3
Changes in working
capital (8.1)
(7.3)
15.8
(11.0)
(2.0)
Depreciation and
amortization 4.4
4.5
4.2
4.0
3.6
Non-cash
compensation, includes 401(k) match expense
6.1
6.5
5.7
6.7
6.6
Deferred income
taxes 9.4
(1.9)
9.6
35.0
2.9
Securities class
action lawsuit settlement -
28.7
(28.7)
-
-
Other
0.1
1.1
(11.1)
1.2
1.9
Cash flow from
operations 27.1
36.2
10.2
32.2
40.3
Capital expenditures -
routine (2.4)
(1.4)
(0.3)
(1.2)
(1.3)
Required debt
repayments (1.3)
(1.3)
(1.6)
(1.3)
(2.8)
Free cash flow
23.4
33.5
8.3
29.7
36.2
Capital Deployment
Acquisitions
(4.1)
(20.0)
-
(9.6)
(2.3)
Share
Repurchases -
-
-
-
-
Total
(4.1)
(20.0)
-
(9.6)
(2.3) |
14 Income Statement Adjustments (1) Amount of non-GAAP adjustments have substantially decreased 1. The financial results for the three-month periods ended March 31, 2017, June 30, 2017, September 30, 2017, December 31, 2017 and March 31,
2018 are adjusted for certain items and should be considered a
non-GAAP financial measure. A reconciliation of these non-GAAP financial measures is included in the corresponding 8-K detailing quarterly results for each respective reporting period.
Income Statement
$000s
Line Item
1Q17
2Q17
3Q17
4Q17
1Q18
Florida ZPIC audit
Revenue
6,506
Cost of Service
Restructuring activity
Cost of service, excluding depreciation and
amortization 101
G&A
Restructuring activity
G&A, Salaries and benefits
2,474
Restructuring activity
G&A, Non-cash compensation
(905)
Restructuring activity
G&A, Other
648
Data Center relocation
G&A, Other
714
226
Acquisition costs
G&A, Other
682
294
48
435
Legal fees -
non-routine
G&A, Other
123
1,111
176
358
562
Securities Class Action Lawsuit settlement
G&A, Other
28,712
Asset impairment
Asset impairment
1,323
Legal settlements
Other, Miscellaneous, net
(674)
(693)
(647)
Miscellaneous, other (income) expense, net
Other, Miscellaneous, net
621
(1,692)
(115)
613
(809)
Deferred tax asset related to tax reform
Income tax expense
21,424
Total
1,466
27,958
7,590
24,414
188
EPS Impact
$0.03
$0.49
$0.13
$0.67
$0.00
Revenue
Other Items |
2018
Guidance |
16 Amedisys 2018 Guidance Targeting 7% growth in revenue and 13% growth in EBITDA; EPS includes impact of tax reform
2017 2018 Revenue Adjusted EBITDA Adjusted Earnings per Share *Adjusted for adoption of new revenue recognition accounting standard $142.2M $1.54B $1.52B* $2.21 $158M $163M $1.60B - $1.64B $2.97 $3.08 |
17 Amedisys 2018 Guidance Considerations Amedisys Consolidated Home Health Personal Care Hospice Total same store admission growth ~10% Continue to leverage industry-leading platform by exploring growth opportunities Large acquisitions Small acquisitions Denovos ~ $1 million Addition of business development resources to maintain organic growth ~
$3 million
Total billable hours growth ~ 7% Employer Medical Assistance Contribution (EMAC) ~$1 million Includes impact of Intercity acquisition (closed Q417) Project solid revenue and earnings growth while continuing to invest in people and future organic
growth
Tax rate ~26 - 27% (includes impact from Tax Cuts and Jobs Act) Cash tax rate ~ 5% Diluted share count ~34.85
million shares
Excludes potential acquisitions and related integration costs Capital Expenditures ~$7- $9 million Benefits increase ~5% - 6% Salary increase ~2% -
3% Overall ~
$9 million investment in business development resources Excludes acquisition activity Total same store admission growth ~5% Focus on business development staffing strategy ~ $6 million
(Y/Y increase)
Continue focus on Quality of Care (Stars and Acute Care Hospitalization rates) Increase focus on underperforming care centers |
18 Reimbursement Outlook 2018 Reimbursement Impact for Home Health and Hospice Home Health Hospice 2018 Market Basket Update 1.0% Nominal Case Mix Adjustment -0.90 Estimated Industry Impact +0.1% Estimated AMED-Specific Impact -0.7% 2018 Market Basket Update 1.0% Productivity / Other Adjustment __ Estimated Industry Impact +1.0% Estimated AMED-Specific Impact +1.0% |
19 EBITDA Seasonality Q1 Q2 Q3 Q4 *EBITDA further adjusted for health insurance and workers compensation 30.0 35.0 40.0 45.0 50.0 55.0 60.0 65.0 Q1 Q2 Q3 Q4 Historical Adj. EBITDA Trends* 2016 2017 Weather disruption Lower RPE (LUPA) Payroll tax reset Short Month (Feb.) Lower Hospice ADC & Higher Salary Cost per Day Highest Completed Episodes Stronger RPE Incremental holiday vs. 1H High PTO Lower Volumes Health Insurance Increases Raises Incremental holiday vs. 1H Health Insurance Increases Better Volumes Raises |
20 EBITDA Seasonality (Unadjusted for Health Insurance and Workers Compensation) Q1 Q2 Q3 Q4 20 25 30 35 40 Q1 Q2 Q3 Q4 Historical Adj. EBITDA Trends 2016 2017 Weather disruption Lower RPE (LUPA) Payroll tax reset Short Month (Feb.) Lower Hospice ADC & Higher Salary Cost per Day Highest Completed Episodes Stronger RPE Incremental holiday vs. 1H High PTO Lower Volumes Health Insurance Increases Raises Incremental holiday vs. 1H Health Insurance Increases Better Volumes Raises |
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