EX-99.1 2 d555326dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

AMEDISYS REPORTS SECOND QUARTER 2018 FINANCIAL RESULTS

AND UPDATES 2018 GUIDANCE

BATON ROUGE, Louisiana (July 31, 2018) — Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three and six-month period ended June 30, 2018.

Three Month Periods Ended June 30, 2018 and 2017

 

    Net service revenue increased $36.7 million to $411.6 million compared to $374.9 million in 2017 (1).

 

    Net income attributable to Amedisys, Inc. of $33.3 million compared to $4.5 million in 2017.

 

    Net income attributable to Amedisys, Inc. per diluted share of $0.98 per diluted share compared to $0.13 in 2017.

Adjusted Quarterly Results*

 

    Adjusted EBITDA of $49.7 million compared to $36.1 million in 2017.

 

    Adjusted net service revenue of $413.3 million compared to $374.9 million in 2017.

 

    Adjusted net income attributable to Amedisys, Inc. of $34.1 million compared to $21.4 million in 2017.

 

    Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.00 compared to $0.62 in 2017.

Six Month Periods Ended June 30, 2018 and 2017

 

    Net service revenue increased $71.3 million to $810.9 million compared to $739.6 million in 2017 (1).

 

    Net income attributable to Amedisys, Inc. of $60.5 million compared to $19.6 million in 2017.

 

    Net income attributable to Amedisys, Inc. per diluted share of $1.76 per diluted share compared to $0.57 in 2017.

Adjusted Year to Date Results*

 

    Adjusted EBITDA of $91.4 million compared to $68.1 million in 2017.

 

    Adjusted net service revenue of $812.6 million compared to $739.6 million in 2017.

 

    Adjusted net income attributable to Amedisys, Inc. of $61.4 million compared to $37.4 million in 2017.

 

    Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.79 compared to $1.09 in 2017.

 

* See pages 12 and 13 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, 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 extremely pleased with the results that our team delivered during the second quarter of 2018. We continued to demonstrate solid growth across all three lines of business, improved upon our quality scores for the thirteenth straight quarter, leveraged our operational platform to drive impressive margin and lowered our

 

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turnover; all of which helped deliver significant increases in revenue, EBITDA and earnings per share. A special thank you to all Amedisys employees that continue to provide industry leading care to our patients and help drive significant value to our shareholders. We look forward to continuing to serve more patients and executing upon our strategic pillars during the second half of the year.”

Updated 2018 Guidance

 

    Net service revenue is anticipated to be in the range of $1.63 billion to $1.65 billion.

 

    Adjusted EBITDA is anticipated to be in the range of $168 million to $172 million.

 

    Adjusted diluted earnings per share is anticipated to be in the range of $3.32 to $3.41 based on an estimated 33.50 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 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, August 1, 2018, at 11:00 a.m. ET to discuss its second 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 September 1, 2018 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13681543.

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 service revenue, defined as net service revenue excluding certain items; (3) adjusted net income attributable to Amedisys, Inc., defined as net income attributable to Amedisys, Inc. excluding certain items; and (4) 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 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. We partner with 3,000 hospitals and 59,000 physicians nationwide who 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 18,300 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.

 

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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.

 

Contact:    Investor Contact:       Media Contact:
     Amedisys, Inc.         Amedisys, Inc.
     Nick Muscato         Kendra Kimmons
     Vice President, Strategic Finance         Vice President, Marketing & Communications
   (855) 259-2046       (225) 299-3720
     IR@amedisys.com         kendra.kimmons@amedisys.com

 

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AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except per share data)

(Unaudited)

 

     For the Three-Month
Periods Ended June 30
    For the Six-Month
Periods Ended June 30
 
     2018     2017     2018     2017  

Net service revenue

   $ 411,603     $ 374,946     $ 810,865     $ 739,607  

Cost of service, excluding depreciation and amortization

     242,564       220,541       480,873       436,870  

General and administrative expenses:

        

Salaries and benefits

     77,215       74,943       152,846       149,402  

Non-cash compensation

     3,767       4,356       7,811       8,230  

Other

     42,104       41,617       83,784       82,034  

Depreciation and amortization

     3,125       4,537       6,718       8,954  

Securities Class Action Lawsuit settlement, net

     —         28,712       —         28,712  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

     368,775       374,706       732,032       714,202  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     42,828       240       78,833       25,405  

Other income (expense):

        

Interest income

     114       41       234       60  

Interest expense

     (2,140     (1,197     (3,843     (2,265

Equity in earnings from equity method investments

     2,976       2,355       4,836       2,249  

Miscellaneous, net

     359       1,127       960       2,239  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income, net

     1,309       2,326       2,187       2,283  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     44,137       2,566       81,020       27,688  

Income tax (expense) benefit

     (10,596     1,963       (20,159     (7,960
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     33,541       4,529       60,861       19,728  

Net income attributable to noncontrolling interests

     (192     (68     (353     (137
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Amedisys, Inc.

   $ 33,349     $ 4,461     $ 60,508     $ 19,591  
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per common share:

        

Net income attributable to Amedisys, Inc. common stockholders

   $ 1.00     $ 0.13     $ 1.80     $ 0.58  

Weighted average shares outstanding

     33,439       33,637       33,705       33,540  

Diluted earnings per common share:

        

Net income attributable to Amedisys, Inc. common stockholders

   $ 0.98     $ 0.13     $ 1.76     $ 0.57  

Weighted average shares outstanding

     34,179       34,329       34,391       34,203  

 

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AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

 

     June 30, 2018
(unaudited)
    December 31,
2017
 
ASSETS             

Current assets:

    

Cash and cash equivalents

   $ 25,904     $ 86,363  

Patient accounts receivable

     197,592       201,196  

Prepaid expenses

     10,493       7,329  

Other current assets

     24,784       16,268  
  

 

 

   

 

 

 

Total current assets

     258,773       311,156  

Property and equipment, net of accumulated depreciation of $101,128 and $146,814

     27,998       31,122  

Goodwill

     324,145       319,949  

Intangible assets, net of accumulated amortization of $31,864 and $30,610

     44,888       46,061  

Deferred income taxes

     46,919       56,064  

Other assets, net

     50,601       49,130  
  

 

 

   

 

 

 

Total assets

   $ 753,324     $ 813,482  
  

 

 

   

 

 

 
LIABILITIES AND EQUITY             

Current liabilities:

    

Accounts payable

   $ 29,810     $ 25,384  

Payroll and employee benefits

     87,239       89,936  

Accrued expenses

     96,472       89,104  

Current portion of long-term obligations

     668       10,638  
  

 

 

   

 

 

 

Total current liabilities

     214,189       215,062  

Long-term obligations, less current portion

     123,937       78,203  

Other long-term obligations

     6,137       3,791  
  

 

 

   

 

 

 

Total liabilities

     344,263       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; 36,044,177 and 35,747,134 shares issued; and 31,801,357 and 33,964,767 shares outstanding

     36       35  

Additional paid-in capital

     585,137       568,780  

Treasury stock, at cost 4,242,820 and 1,782,367 shares of common stock

     (237,947     (53,713

Accumulated other comprehensive income

     15       15  

Retained earnings

     60,712       204  
  

 

 

   

 

 

 

Total Amedisys, Inc. stockholders’ equity

     407,953       515,321  

Noncontrolling interests

     1,108       1,105  
  

 

 

   

 

 

 

Total equity

     409,061       516,426  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 753,324     $ 813,482  
  

 

 

   

 

 

 

 

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AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING

(Amounts in thousands, except statistical information)

(Unaudited)

 

     For the Three-Month
Periods Ended June 30
    For the Six-Month
Periods Ended June 30
 
     2018     2017     2018     2017  

Cash Flows from Operating Activities:

        

Net income

   $ 33,541     $ 4,529     $ 60,861     $ 19,728  

Adjustments to reconcile net income to net cash provided by operating activities:

        

Depreciation and amortization

     3,125       4,537       6,718       8,954  

Non-cash compensation

     3,767       4,356       7,811       8,230  

401(k) employer match

     2,327       2,140       4,894       4,367  

Loss on disposal of property and equipment

     87       163       650       147  

Deferred income taxes

     6,200       (1,863     9,145       7,582  

Equity in earnings from equity method investments

     (2,976     (2,355     (4,836     (2,249

Amortization of deferred debt issuance costs

     177       185       355       370  

Write off of deferred debt issuance costs

     38       —         38       —    

Return on equity investment

     1,579       3,266       2,204       3,416  

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

        

Patient accounts receivable

     (4,656     (681     3,604       (6,833

Other current assets

     (4,698     (3,489     (11,680     (6,892

Other assets

     642       (158     688       (1,148

Accounts payable

     5,146       1,000       3,623       1,093  

Securities Class Action Lawsuit settlement accrual, net

     —         28,712       —         28,712  

Accrued expenses

     6,355       (4,129     4,548       (2,743

Other long-term obligations

     (1     31       2,347       607  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     50,653       36,244       90,970       63,341  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flows from Investing Activities:

        

Proceeds from sale of deferred compensation plan assets

     9       —         471       565  

Proceeds from the sale of property and equipment

     6       —         11       —    

Purchase of investment

     —         (180     —         (436

Purchases of property and equipment

     (149     (3,064     (1,611     (7,449

Acquisitions of businesses, net of cash acquired

     (1,824     (20,029     (4,074     (24,128
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (1,958     (23,273     (5,203     (31,448
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flows from Financing Activities:

        

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

     2,484       3,550       2,609       4,203  

Proceeds from issuance of stock to employee stock purchase plan

     560       575       1,157       1,187  

Shares withheld upon stock vesting

     (1,527     (4,968     (2,832     (5,726

Non-controlling interest distribution

     (322     (48     (350     (90

Proceeds from borrowings under revolving line of credit

     127,500       —         127,500       —    

Principal payments of long-term obligations

     (87,656     (1,250     (90,475     (2,500

Debt issuance costs

     (2,433     —         (2,433     —    

Purchase of company stock

     (181,402     —         (181,402     —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

     (142,796     (2,141     (146,226     (2,926
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (decrease) increase in cash and cash equivalents

     (94,101     10,830       (60,459     28,967  

Cash and cash equivalents at beginning of period

     120,005       48,334       86,363       30,197  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 25,904     $ 59,164     $ 25,904     $ 59,164  
  

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Disclosures of Cash Flow Information:

        

Cash paid for interest

   $ 1,015     $ 466     $ 2,080     $ 1,172  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash paid for income taxes, net of refunds received

   $ 3,336     $ —       $ 6,149     $ 284  
  

 

 

   

 

 

   

 

 

   

 

 

 

Days revenue outstanding (1)

     41.1       40.2       41.1       40.2  

 

(1)

Our calculation of days revenue outstanding at June 30, 2018 and 2017 is derived by dividing our ending patient accounts receivable by our average daily patient revenue for the three month periods ended June 30, 2018 and 2017, respectively.

 

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AMEDISYS, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Amounts in millions, except statistical information)

(Unaudited)

Segment Information - Home Health

 

     For the Three-
Month Periods
Ended June 30,
 
     2018     2017  

Financial Information (in millions):

    

Medicare

   $ 206.3     $ 198.3  

Non-Medicare

     85.2       72.0  
  

 

 

   

 

 

 

Net service revenue

     291.5       270.3  

Cost of service

     176.5       164.8  
  

 

 

   

 

 

 

Gross margin

     115.0       105.5  

Other operating expenses

     69.2       69.9  
  

 

 

   

 

 

 

Operating income

   $ 45.8     $ 35.6  
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     6     (5 %) 

Non-Medicare revenue

     18     14

Total admissions

     6     —  

Total volume (2)

     8     2

Total Episodic admissions (3)

     5     (1 %) 

Total Episodic volume (4)

     6     2

Key Statistical Data - Total (5):

    

Medicare:

    

Admissions

     47,058       47,260  

Recertifications

     28,431       26,839  
  

 

 

   

 

 

 

Total volume

     75,489       74,099  

Completed episodes

     74,776       73,872  

Visits

     1,318,074       1,271,747  

Average revenue per completed episode (6)

   $ 2,874     $ 2,829  

Visits per completed episode (7)

     17.8       17.5  

Non-Medicare:

    

Admissions

     29,271       26,225  

Recertifications

     13,891       11,462  
  

 

 

   

 

 

 

Total volume

     43,162       37,687  

Visits

     690,548       579,328  

Total (5):

    

Visiting Clinician Cost per Visit

   $ 80.07     $ 80.61  

Clinical Manager Cost per Visit

   $ 7.76     $ 8.44  
  

 

 

   

 

 

 

Total Cost per Visit

   $ 87.83     $ 89.05  

Visits

     2,008,622       1,851,075  

 

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     For the Six-
Month Periods
Ended June 30,
 
     2018     2017  

Financial Information (in millions):

    

Medicare

   $ 411.3     $ 397.0  

Non-Medicare

     164.3       140.9  
  

 

 

   

 

 

 

Net service revenue

     575.6       537.9  

Cost of service

     350.9       327.8  
  

 

 

   

 

 

 

Gross margin

     224.7       210.1  

Other operating expenses

     138.0       138.8  
  

 

 

   

 

 

 

Operating income

   $ 86.7     $ 71.3  
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     5     (4 %) 

Non-Medicare revenue

     16     12

Total admissions

     5     1

Total volume (2)

     7     2

Total Episodic admissions (3)

     4     1

Total Episodic volume (4)

     6     2

Key Statistical Data - Total (5):

    

Medicare:

    

Admissions

     96,513       96,888  

Recertifications

     55,667       51,882  
  

 

 

   

 

 

 

Total volume

     152,180       148,770  

Completed episodes

     147,612       145,736  

Visits

     2,632,200       2,534,845  

Average revenue per completed episode (6)

   $ 2,833     $ 2,806  

Visits per completed episode (7)

     17.5       17.2  

Non-Medicare:

    

Admissions

     59,160       53,558  

Recertifications

     26,323       21,686  
  

 

 

   

 

 

 

Total volume

     85,483       75,244  

Visits

     1,351,481       1,134,876  

Total (5):

    

Visiting Clinician Cost per Visit

   $ 80.20     $ 80.84  

Clinical Manager Cost per Visit

   $ 7.88     $ 8.49  
  

 

 

   

 

 

 

Total Cost per Visit

   $ 88.08     $ 89.33  

Visits

     3,983,681       3,669,721  

 

(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 includes 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.

 

8


(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.

Segment Information - Hospice

 

     For the Three-
Month Periods
Ended June 30,
 
     2018     2017  

Financial Information (in millions):

    

Medicare

   $ 96.9     $ 85.8  

Non-Medicare

     4.5       4.5  
  

 

 

   

 

 

 

Net service revenue

     101.4       90.3  

Cost of service

     51.7       45.4  
  

 

 

   

 

 

 

Gross margin

     49.7       44.9  

Other operating expenses

     20.6       19.3  
  

 

 

   

 

 

 

Operating income

   $ 29.1     $ 25.6  
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     13     19

Non-Medicare revenue

     (1 %)      8

Hospice admissions

     7     11

Average daily census

     12     16

Key Statistical Data - Total (2):

    

Hospice admissions

     6,746       6,248  

Average daily census

     7,554       6,717  

Revenue per day, net

   $ 147.58     $ 147.74  

Cost of service per day

   $ 75.20     $ 74.34  

Average discharge length of stay

     97       89  
     For the Six-
Month Periods
Ended June 30,
 
     2018     2017  

Financial Information (in millions):

    

Medicare

   $ 188.7     $ 166.5  

Non-Medicare

     10.0       7.4  
  

 

 

   

 

 

 

Net service revenue

     198.7       173.9  

Cost of service

     101.8       88.4  
  

 

 

   

 

 

 

Gross margin

     96.9       85.5  

Other operating expenses

     40.8       37.5  
  

 

 

   

 

 

 

Operating income

   $ 56.1     $ 48.0  
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     12     18

Non-Medicare revenue

     33     (7 %) 

Hospice admissions

     6     15

Average daily census

     12     16

Key Statistical Data - Total (2):

    

Hospice admissions

     13,679       12,753  

Average daily census

     7,385       6,542  

Revenue per day, net

   $ 148.66     $ 146.89  

Cost of service per day

   $ 76.15     $ 74.68  

Average discharge length of stay

     97       90  

 

9


(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 Periods
Ended June 30,
 
     2018      2017  

Financial Information (in millions):

     

Medicare

   $ —        $ —    

Non-Medicare

     18.7        14.3  
  

 

 

    

 

 

 

Net service revenue

     18.7        14.3  

Cost of service

     14.4        10.3  
  

 

 

    

 

 

 

Gross margin

     4.3        4.0  

Other operating expenses

     3.3        3.0  
  

 

 

    

 

 

 

Operating income

   $ 1.0      $ 1.0  
  

 

 

    

 

 

 

Key Statistical Data:

     

Billable hours

     797,228        618,401  

Clients served

     12,683        8,270  

Shifts

     356,874        283,130  

Revenue per hour

   $ 23.48      $ 23.12  

Revenue per shift

   $ 52.45      $ 50.50  

Hours per shift

     2.2        2.2  
     For the Six-
Month Periods
Ended June 30,
 
     2018      2017  

Financial Information (in millions):

     

Medicare

   $ —        $ —    

Non-Medicare

     36.6        27.8  
  

 

 

    

 

 

 

Net service revenue

     36.6        27.8  

Cost of service

     28.2        20.7  
  

 

 

    

 

 

 

Gross margin

     8.4        7.1  

Other operating expenses

     6.6        6.3  
  

 

 

    

 

 

 

Operating income

   $ 1.8      $ 0.8  
  

 

 

    

 

 

 

Key Statistical Data:

     

Billable hours

     1,547,181        1,206,618  

Clients served

     14,350        9,845  

Shifts

     705,040        548,247  

Revenue per hour

   $ 23.66      $ 23.04  

Revenue per shift

   $ 51.91      $ 50.72  

Hours per shift

     2.2        2.2  

 

10


Segment Information - Corporate

 

     For the Three-
Month Periods
Ended June 30,
 
     2018      2017  

Financial Information (in millions):

     

Other operating expenses

   $ 31.1      $ 30.0  

Depreciation and amortization

     2.0        3.3  
  

 

 

    

 

 

 

Total operating expenses before Securities Class Action Lawsuit settlement, net

     33.1        33.3  

Securities Class Action Lawsuit settlement, net

     —          28.7  
  

 

 

    

 

 

 

Total operating expenses

   $ 33.1      $ 62.0  
  

 

 

    

 

 

 
     For the Six-
Month Periods
Ended June 30,
 
     2018      2017  

Financial Information (in millions):

     

Other operating expenses

   $ 61.3      $ 59.5  

Depreciation and amortization

     4.5        6.5  
  

 

 

    

 

 

 

Total operating expenses before Securities Class Action Lawsuit settlement, net

     65.8        66.0  

Securities Class Action Lawsuit settlement, net

     —          28.7  
  

 

 

    

 

 

 

Total operating expenses

   $ 65.8      $ 94.7  
  

 

 

    

 

 

 

 

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 June 30,
     For the Six-
Month Period
Ended June 30,
 
     2018      2017      2018      2017  

Net income attributable to Amedisys, Inc.

   $ 33,349      $ 4,461      $ 60,508      $ 19,591  

Add:

           

Income tax expense (benefit)

     10,596        (1,963      20,159        7,960  

Interest expense, net

     2,026        1,156        3,609        2,205  

Depreciation and amortization

     3,125        4,537        6,718        8,954  

Certain items (1)

     1,035        27,958        1,224        29,424  

Interest component of certain items (1)

     (446      —          (829      —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted EBITDA (2) (6)

   $ 49,685      $ 36,149      $ 91,389      $ 68,134  
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted Net Service Revenue Reconciliation:

 

     For the Three-
Month Period
Ended June 30,
     For the Six-
Month Period
Ended June 30,
 
     2018      2017      2018      2017  

Net service revenue

   $ 411,603      $ 374,946      $ 810,865      $ 739,607  

Add:

           

Certain items (1)

     1,687        —          1,687        —    
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted net service revenue (3) (6)

   $ 413,290      $ 374,946      $ 812,552      $ 739,607  
  

 

 

    

 

 

    

 

 

    

 

 

 

Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:

 

     For the Three-
Month Period
Ended June 30,
     For the Six-
Month Period
Ended June 30,
 
     2018      2017      2018      2017  

Net income attributable to Amedisys, Inc.

   $ 33,349      $ 4,461      $ 60,508      $ 19,591  

Add:

           

Certain items (1)

     766        16,915        906        17,802  
  

 

 

    

 

 

    

 

 

    

 

 

 

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

   $ 34,115      $ 21,376      $ 61,414      $ 37,393  
  

 

 

    

 

 

    

 

 

    

 

 

 

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

 

     For the Three-
Month Period
Ended June 30,
     For the Six-
Month Period
Ended June 30,
 
     2018      2017      2018      2017  

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

   $ 0.98      $ 0.13      $ 1.76      $ 0.57  

Add:

           

Certain items (1)

     0.02        0.49        0.03        0.52  
  

 

 

    

 

 

    

 

 

    

 

 

 

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

   $ 1.00      $ 0.62      $ 1.79      $ 1.09  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

12


(1)

The following details the certain items for the three and six month periods ended June 30, 2018 and 2017:

Certain Items:

 

     For the Three-
Month Period
Ended June 30, 2018
     For the Six-
Month Period
Ended June 30, 2018
 
     (Income) Expense      (Income) Expense  

Certain Items Impacting Net Service Revenue:

     

Florida self-audit (pre-acquisition)

   $ 1,687      $ 1,687  

Certain Items Impacting Operating Expenses:

     

Acquisition costs

     440        875  

Legal fees - non-routine

     543        1,105  

Certain Items Impacting Total Other Income (Expense):

     

Miscellaneous, other (income) expense, net

     (1,635      (2,443
  

 

 

    

 

 

 

Total

   $ 1,035      $ 1,224  
  

 

 

    

 

 

 

Net of tax

   $ 766      $ 906  
  

 

 

    

 

 

 

Diluted EPS

   $ 0.02      $ 0.03  
  

 

 

    

 

 

 
     For the Three-
Month Period
Ended June 30, 2017
     For the Six-
Month Period
Ended June 30, 2017
 
     (Income) Expense      (Income) Expense  

Certain Items Impacting Operating Expenses:

     

Acquisition costs

   $ 294      $ 976  

Legal fees - non-routine

     1,111        1,234  

Securities Class Action Lawsuit settlement accrual, net

     28,712        28,712  

Data center relocation

     226        940  

Certain Items Impacting Total Other Income (Expense):

     

Legal settlements

     (693      (1,367

Miscellaneous, other (income) expense, net

     (1,692      (1,071
  

 

 

    

 

 

 

Total

   $ 27,958      $ 29,424  
  

 

 

    

 

 

 

Net of tax

   $ 16,915      $ 17,802  
  

 

 

    

 

 

 

Diluted EPS

   $ 0.49      $ 0.52  
  

 

 

    

 

 

 

 

(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 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 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 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