Market Overview

Amedisys Reports Second Quarter 2018 Financial Results and Updates 2018 Guidance

Share:

BATON ROUGE, La., July 31, 2018 (GLOBE NEWSWIRE) -- 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 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.

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



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  



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  
     



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.




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  


  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.
(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  


(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


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
     




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
         


(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.


 

Primary Logo

View Comments and Join the Discussion!