Amedisys Reports Fourth Quarter and Year End 2020 Financial Results

BATON ROUGE, La., Feb. 24, 2021 (GLOBE NEWSWIRE) -- Amedisys, Inc. AMED today reported its financial results for the three-month period and year ended December 31, 2020.

Three-Month Periods Ended December 31, 2020 and 2019

• Net service revenue increased $50.0 million to $550.7 million compared to $500.7 million in 2019.
  
  
• Net income attributable to Amedisys, Inc. of $45.2 million compared to $27.7 million in 2019.
  
  
• Net income attributable to Amedisys, Inc. per diluted share of $1.36 compared to $0.83 in 2019.

Adjusted Quarterly Results*

• Adjusted EBITDA of $78.1 million compared to $52.2 million in 2019.
  
  
• Adjusted net service revenue of $550.7 million compared to $500.7 million in 2019.
  
  
• Adjusted net income attributable to Amedisys, Inc. of $49.5 million compared to $31.1 million in 2019.
  
  
• Adjusted net income attributable to Amedisys, Inc. per diluted share of $1.49 compared to $0.94 in 2019.

Years Ended December 31, 2020 and 2019

• Net service revenue increased $115.9 million to $2,071.5 million compared to $1,955.6 million in 2019.
  
  
• Net income attributable to Amedisys, Inc. of $183.6 million compared to $126.8 million in 2019.
  
  
• Net income attributable to Amedisys, Inc. per diluted share of $5.52 compared to $3.84 in 2019.

Adjusted Year End Results*

• Adjusted EBITDA of $273.5 million compared to $225.3 million in 2019.
  
  
• Adjusted net service revenue of $2,071.5 million compared to $1,961.6 million in 2019.
  
  
• Adjusted net income attributable to Amedisys, Inc. of $203.3 million compared to $145.2 million in 2019.
  
  
• Adjusted net income attributable to Amedisys, Inc. per diluted share of $6.11 compared to $4.40 in 2019.

*  See pages 13-16 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

2021 Guidance

• Net service revenue is anticipated to be in the range of $2.275 billion to $2.315 billion.
  
  
• Adjusted EBITDA is anticipated to be in the range of $315 million to $325 million.
  
  
• Adjusted diluted earnings per share is anticipated to be in the range of $6.25 to $6.47 based on an estimated 33.4 million shares outstanding.

This guidance excludes the effects of any future acquisitions and potential share repurchases, if any are made.

Executive Promotions

On February 18, 2021, the Board of Directors (the "Board") of the Company promoted Christopher T. Gerard, currently the Company's Chief Operating Officer, to President and Chief Operating Officer and Scott G. Ginn, currently the Company's Chief Financial Officer, to Executive Vice President and Chief Financial Officer, effective immediately.

Paul B. Kusserow, Chairman and Chief Executive Officer stated, "I am very proud of our fourth quarter and full year 2020 results. This was an incredible year under normal circumstances, throw in PDGM and a pandemic and I really could not be more proud of the team for all we accomplished. A special thank you to all of our clinician staff for continuing to do what you do best. It is because of your compassion, bravery and tireless efforts that we are able to deliver another great quarter. I would also like to congratulate Chris Gerard on his promotion to President and COO and Scott Ginn on his promotion to Executive Vice President and CFO. Chris and Scott have been integral to both the company's operational success as well as in setting our strategic direction. This is a fitting reward for their great work!"

We urge caution in considering the current trends and 2021 guidance disclosed in this press release. The home health, hospice and personal care industries are 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, 2020, 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 Thursday, February 25, 2021, at 11:00 a.m. ET to discuss its fourth quarter and year end 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 March 25, 2021 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13715337.

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 net interest expense, provision for income taxes and depreciation and amortization, excluding certain items; (2) adjusted net service revenue, defined as net service revenue excluding certain items; (3) adjusted other operating income, defined as other operating income excluding certain items; (4) adjusted net income attributable to Amedisys, Inc., defined as net income attributable to Amedisys, Inc. excluding certain items; and (5) 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 our patients to manage a chronic disease; or hospice care at the end of life. More than 2,900 hospitals and 78,000 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 approximately 21,000 employees in 514 care centers within 39 states and the District of Columbia, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 418,000 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," "strategy," "plans," "anticipates," "intends," "projects," "estimates," "may," "might," "could," "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: the impact of the novel coronavirus pandemic ("COVID-19"), including the measures that have been and may be taken by governmental authorities to mitigate it, on our business, financial condition and results of operations, 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, 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, competition in the healthcare industry, changes in the case mix of patients and payment methodologies, changes in estimates and judgments associated with critical accounting policies, our ability to maintain or establish new patient referral sources, our ability to consistently provide high-quality care, our ability to attract and retain qualified personnel, our ability to keep our patients and employees safe, 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, widespread protest or civil unrest, our ability to integrate, manage and keep our information systems secure, our ability to realize the anticipated benefits of acquisitions 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.

AMEDISYS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)

AMEDISYS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)

AMEDISYS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING
(Amounts in thousands, except statistical information)

(1)    Our calculation of days revenue outstanding, net is derived by dividing our ending net patient accounts receivable at December 31, 2020 and 2019 by our average daily net patient service revenue for the three-month periods ended December 31, 2020 and 2019, respectively.

AMEDISYS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(Amounts in millions, except statistical information)
(Unaudited)

Segment Information - Home Health

(1)    Same store information represents the percent change in our Medicare, Non-Medicare and Total revenue, admissions or volume for the period as a percent of the Medicare, Non-Medicare and Total revenue, admissions or volume of the prior period. Effective July 1, 2019, same store is defined as care centers that we have operated for at least the last twelve months and startups that are an expansion of a same store care center.
(2)    Total volume includes all admissions and recertifications.
(3)    Total includes acquisitions and denovos.
(4)    Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare completed episode of care. Average Medicare revenue per completed episode for the three-month period and year ended December 31, 2020 reflects the the transition to PDGM effective January 1, 2020 and the suspension of sequestration effective May 1, 2020.
(5)    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)    Prior year amounts have been recast to conform to the current year calculation.

Segment Information - Hospice

(1)    Same store information represents the percent change in our Medicare revenue, Hospice admissions or average daily census for the period as a percent of the Medicare revenue, Hospice admissions or average daily census of the prior period. Effective July 1, 2019, same store is defined as care centers that we have operated for at least the last twelve months and startups that are an expansion of a same store care center.
(2)    Total includes acquisitions and denovos.

Segment Information - Personal Care

(1)    Total includes acquisitions.

Segment Information - Corporate

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") Reconciliation:

Adjusted Net Service Revenue Reconciliation:

Adjusted Other Operating Income Reconciliation:

Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:

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

(1)    The following details the certain items for the three-month periods and years ended December 31, 2020 and 2019:

Certain Items:

(2)    Adjusted EBITDA is defined as net income attributable to Amedisys, Inc. before net interest expense, provision for income taxes and depreciation and amortization, excluding certain items as described in footnote 1.
(3)    Adjusted net service revenue is defined as net service revenue excluding certain items as described in footnote 1.
(4)    Adjusted other operating income is defined as other operating income excluding certain items as described in footnote 1.
(5)    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.
(6)    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.
(7)    Adjusted EBITDA, adjusted net service revenue, adjusted other operating income, 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 measures 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.
(8)    Planned closures consist of in-patient units acquired from Compassionate Care Hospice whose operations ceased in April 2019.