AMED

AMEDISYS INC

Healthcare | Mid Cap

$1.25

EPS Forecast

$584.6

Revenue Forecast

The company already released most recent quarter's earnings. We will publish our AI's next quarter's forecast around 2024-09-30
EX-99.1 2 d886355dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

AMEDISYS REPORTS FOURTH QUARTER AND YEAR END 2019 FINANCIAL RESULTS

ISSUES 2020 GUIDANCE

BATON ROUGE, Louisiana (February 18, 2020) — Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three month period and year ended December 31, 2019.

Three Month Periods Ended December 31, 2019 and 2018

 

   

Net service revenue increased $66.3 million to $500.7 million compared to $434.4 million in 2018.

 

   

Net income attributable to Amedisys, Inc. of $27.7 million compared to $27.5 million in 2018.

 

   

Net income attributable to Amedisys, Inc. per diluted share of $0.83 compared to $0.84 in 2018.

Adjusted Quarterly Results*

 

   

Adjusted EBITDA of $52.2 million compared to $43.9 million in 2018.

 

   

Adjusted net service revenue of $500.7 million compared to $434.4 million in 2018.

 

   

Adjusted net income attributable to Amedisys, Inc. of $31.1 million compared to $29.8 million in 2018.

 

   

Adjusted net income attributable to Amedisys, Inc. per diluted share of $0.94 compared to $0.91 in 2018.

Years Ended December 31, 2019 and 2018

 

   

Net service revenue increased $293.0 million to $1,955.6 million compared to $1,662.6 million in 2018.

 

   

Net income attributable to Amedisys, Inc. of $126.8 million compared to $119.3 million in 2018.

 

   

Net income attributable to Amedisys, Inc. per diluted share of $3.84 compared to $3.55 in 2018.

Adjusted Year End Results*

 

   

Adjusted EBITDA of $225.3 million compared to $180.6 million in 2018.

 

   

Adjusted net service revenue of $1,961.6 million compared to $1,664.3 million in 2018.

 

   

Adjusted net income attributable to Amedisys, Inc. of $145.2 million compared to $122.1 million in 2018.

 

   

Adjusted net income attributable to Amedisys, Inc. per diluted share of $4.40 compared to $3.63 in 2018.

 

*

See pages 12-14 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

Paul B. Kusserow, Chairman, President and Chief Executive Officer stated, “I am very proud of our fourth quarter and year end results as we continued our trend of outperformance this year. We have stayed true to our mission of providing clinically excellent care to our patients no matter where they call home, and it has once again translated into stellar financial results. None of this would be possible without the unwavering dedication of our over 21,000 employees, and I thank each and every one of you for your continued commitment to our patients. We are set up for a great 2020 as we navigate the waters of PDGM, and I look forward to another year of outperformance.”

 

1


2020 Guidance

 

   

Net service revenue is anticipated to be in the range of $2.115 billion to $2.160 billion.

 

   

Adjusted EBITDA is anticipated to be in the range of $250 million to $260 million.

 

   

Adjusted diluted earnings per share is anticipated to be in the range of $4.90 to $5.13 based on an estimated 33.4 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 2020 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, 2019, and subsequent Quarterly Reports on Form 10-Q, and current reports on Form 8-K which can be found on the SEC’s internet website, http://www.sec.gov, and our internet website, http://www.amedisys.com.

Earnings Call and Webcast Information

Amedisys will host a conference call on Wednesday, February 19, 2020, 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 19, 2020 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13698548.

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. More than 2,600 hospitals and 67,000 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 more than 21,000 employees in 479 care centers within 38 states and the District of Columbia, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 415,000 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.

 

2


Forward-Looking Statements

When included in this press release, words like “believes,” “belief,” “expects,” “strategy,” “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 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, 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 realize the anticipated benefits of the acquisition of Compassionate Care Hospice (“CCH”), our ability to comply with requirements stipulated in the CCH 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

 

3


AMEDISYS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except per share data)

 

     For the Three-Month
Period Ended December 31
    For the Year Ended
December 31
 
     2019     2018     2019     2018  
     (Unaudited)              

Net service revenue

   $ 500,678     $ 434,378     $ 1,955,633     $ 1,662,578  

Cost of service, excluding depreciation and amortization

     295,603       262,251       1,150,337       992,863  

General and administrative expenses:

        

Salaries and benefits

     101,325       84,309       394,452       316,522  

Non-cash compensation

     6,589       5,234       25,040       17,887  

Other

     48,150       42,778       188,434       166,897  

Depreciation and amortization

     5,988       3,379       18,428       13,261  

Asset impairment charge

     1,470       —         1,470       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

     459,125       397,951       1,778,161       1,507,430  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     41,553       36,427       177,472       155,148  

Other income (expense):

        

Interest income

     19       15       78       278  

Interest expense

     (3,056     (1,536     (14,515     (7,370

Equity in earnings from equity method investments

     1,218       1,231       5,338       7,692  

Miscellaneous, net

     (367     458       2,037       3,240  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other (expense) income, net

     (2,186     168       (7,062     3,840  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     39,367       36,595       170,410       158,988  

Income tax expense

     (11,398     (8,875     (42,503     (38,859
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     27,969       27,720       127,907       120,129  

Net income attributable to noncontrolling interests

     (314     (259     (1,074     (783
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Amedisys, Inc.

   $ 27,655     $ 27,461     $ 126,833     $ 119,346  
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per common share:

        

Net income attributable to Amedisys, Inc. common stockholders

   $ 0.86     $ 0.86     $ 3.95     $ 3.64  

Weighted average shares outstanding

     32,278       31,916       32,142       32,791  

Diluted earnings per common share:

        

Net income attributable to Amedisys, Inc. common stockholders

   $ 0.83     $ 0.84     $ 3.84     $ 3.55  

Weighted average shares outstanding

     33,123       32,805       32,990       33,609  

 

4


AMEDISYS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

 

     As of December 31,  
     2019     2018  
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 30,294     $ 20,229  

Restricted cash

     66,196       —    

Patient accounts receivable

     237,596       188,972  

Prepaid expenses

     8,243       7,568  

Other current assets

     8,225       7,349  
  

 

 

   

 

 

 

Total current assets

     350,554       224,118  

Property and equipment, net of accumulated depreciation of $96,137 and $95,472

     28,113       29,449  

Operating lease right of use assets

     84,791       —    

Goodwill

     658,500       329,480  

Intangible assets, net of accumulated amortization of $7,044 and $693

     64,748       44,132  

Deferred income taxes

     21,427       35,794  

Other assets

     54,612       54,145  
  

 

 

   

 

 

 

Total assets

   $ 1,262,745     $ 717,118  
  

 

 

   

 

 

 
LIABILITIES AND EQUITY     

Current liabilities:

    

Accounts payable

   $ 31,259     $ 28,531  

Payroll and employee benefits

     120,877       92,858  

Accrued expenses

     137,111       99,475  

Current portion of long-term obligations

     9,927       1,612  

Current portion of operating lease liabilities

     27,769       —    
  

 

 

   

 

 

 

Total current liabilities

     326,943       222,476  

Long-term obligations, less current portion

     232,256       5,775  

Operating lease liabilities, less current portion

     56,128        

Other long-term obligations

     5,905       6,234  
  

 

 

   

 

 

 

Total liabilities

     621,232       234,485  
  

 

 

   

 

 

 

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; 36,638,021 and 36,252,280 shares issued; and 32,284,051 and 31,973,505 shares outstanding

     37       36  

Additional paid-in capital

     645,256       603,666  

Treasury stock at cost 4,353,970 and 4,278,775 shares of common stock

     (251,241     (241,685

Accumulated other comprehensive income

     15       15  

Retained earnings

     246,383       119,550  
  

 

 

   

 

 

 

Total Amedisys, Inc. stockholders’ equity

     640,450       481,582  

Noncontrolling interests

     1,063       1,051  
  

 

 

   

 

 

 

Total equity

     641,513       482,633  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 1,262,745     $ 717,118  
  

 

 

   

 

 

 

 

5


AMEDISYS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING

(Amounts in thousands, except statistical information)

 

     For the Three-Month
Period Ended December 31
    For the Year Ended
December 31
 
     2019     2018     2019     2018  
     (Unaudited)              

Cash Flows from Operating Activities:

        

Net income

   $ 27,969     $ 27,720     $ 127,907     $ 120,129  

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

        

Depreciation and amortization

     5,988       3,379       18,428       13,261  

Non-cash compensation

     6,589       5,234       25,040       17,887  

401(k) employer match

     2,964       2,042       10,509       8,976  

Amortization and impairment of operating lease right of use assets

     8,891       —         35,905       —    

Loss (gain) on disposal of property and equipment

     135       (24     141       714  

Deferred income taxes

     (4,332     5,355       13,466       20,271  

Equity in earnings from equity method investments

     (1,218     (1,231     (5,338     (7,692

Amortization of deferred debt issuance costs/debt discount

     220       201       873       797  

Return on equity investment

     1,228       1,785       4,955       6,158  

Asset impairment charge

     1,470       —         1,470       —    

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

        

Patient accounts receivable

     15,323       6,058       (24,146     12,224  

Other current assets

     7,512       8,711       (2,682     8,679  

Other assets

     630       2,221       832       2,947  

Accounts payable

     (3,184     3,835       (11,329     3,165  

Accrued expenses

     14,193       (1,234     42,096       13,524  

Other long-term obligations

     (98     (19     (329     2,443  

Operating lease liabilities

     (8,179     —         (32,295     —    

Operating lease right of use assets

     (881     —         (3,503     —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     75,220       64,033       202,000       223,483  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flows from Investing Activities:

        

Proceeds from sale of deferred compensation plan assets

     161       152       448       715  

Proceeds from the sale of property and equipment

     4       3       162       54  

Purchases of property and equipment

     (1,551     (874     (7,888     (6,558

Investments in equity method investees

     —         (3,667     (210     (7,144

Acquisitions of businesses, net of cash acquired

     —         (5,186     (345,460     (9,260
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     (1,386     (9,572     (352,948     (22,193
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash Flows from Financing Activities:

        

Proceeds from issuance of stock upon exercise of stock options

     223       3,204       3,611       5,953  

Proceeds from issuance of stock to employee stock purchase plan

     803       642       3,187       2,429  

Shares withheld upon stock vesting

     (171     (1,149     (9,556     (6,570

Non-controlling interest distribution

     (152     (560     (1,062     (1,090

Proceeds from borrowings under term loan

     —         —         175,000       —    

Proceeds from borrowings under revolving line of credit

     70,000       10,500       262,500       138,000  

Repayments of borrowings under revolving line of credit

     (67,000     (60,500     (200,000     (130,500

Principal payments of long-term obligations

     (1,804     (379     (5,624     (91,450

Debt issuance costs

     —         —         (847     (2,433

Purchase of company stock

     —         —         —         (181,402

Repurchase of noncontrolling interest

     —         —         —         (361
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     1,899       (48,242     227,209       (267,424
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash, cash equivalents and restricted cash

     75,733       6,219       76,261       (66,134

Cash, cash equivalents and restricted cash at beginning of period

     20,757       14,010       20,229       86,363  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash, cash equivalents and restricted cash at end of period

   $ 96,490     $ 20,229     $ 96,490     $ 20,229  
  

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Disclosures of Cash Flow Information:

        

Cash paid for interest

   $ 1,872     $ 533     $ 9,628     $ 3,522  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash paid for income taxes, net of refunds received

   $ 11,866     $ 3,261     $ 29,522     $ 14,278  
  

 

 

   

 

 

   

 

 

   

 

 

 

Supplemental Disclosures of Non-Cash Financing Activities:

        

Note payable issued for software licenses

   $ —       $ —       $ —       $ 418  
  

 

 

   

 

 

   

 

 

   

 

 

 

Days revenue outstanding (1)

     40.9       38.0       40.9       38.0  

 

(1)

Our calculation of days revenue outstanding at December 31, 2019 and 2018 is derived by dividing our ending patient accounts receivable by our average daily patient revenue for the three month periods ended December 31, 2019 and 2018, respectively.

 

6


AMEDISYS, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Amounts in millions, except statistical information)

(Unaudited)

Segment Information - Home Health

 

     For the
Three-Month Period
Ended December 31,
 
     2019     2018  

Financial Information (in millions):

    

Medicare

   $ 215.2     $ 211.5  

Non-Medicare

     101.0       92.5  
  

 

 

   

 

 

 

Net service revenue

     316.2       304.0  

Cost of service

     191.7       189.4  
  

 

 

   

 

 

 

Gross margin

     124.5       114.6  

Asset impairment charge

     1.5       —    

Other operating expenses

     77.4       72.2  
  

 

 

   

 

 

 

Operating income

   $ 45.6     $ 42.4  
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     2     3

Non-Medicare revenue

     10     20

Total admissions

     4     6

Total volume (2)

     4     6

Key Statistical Data - Total (3):

    

Medicare:

    

Admissions

     48,028       47,864  

Recertifications

     27,909       28,555  
  

 

 

   

 

 

 

Total volume

     75,937       76,419  

Completed episodes

     75,916       75,497  

Visits

     1,272,381       1,328,025  

Average revenue per completed episode (4)

   $ 2,916     $ 2,891  

Visits per completed episode (5)

     17.0       17.7  

Non-Medicare:

    

Admissions

     32,996       30,092  

Recertifications

     16,163       14,874  
  

 

 

   

 

 

 

Total volume

     49,159       44,966  

Visits

     762,169       722,677  

Total (3):

    

Visiting Clinician Cost per Visit

   $ 85.82     $ 84.27  

Clinical Manager Cost per Visit

     8.44       8.09  
  

 

 

   

 

 

 

Total Cost per Visit

   $ 94.26     $ 92.36  

Visits

     2,034,550       2,050,702  

 

7


     For the Year
Ended December 31,
 
     2019     2018  

Financial Information (in millions):

    

Medicare

   $ 859.2     $ 830.8  

Non-Medicare

     397.2       343.7  
  

 

 

   

 

 

 

Net service revenue

     1,256.4       1,174.5  

Cost of service

     754.1       722.1  
  

 

 

   

 

 

 

Gross margin

     502.3       452.4  

Asset impairment charge

     1.5       —    

Other operating expenses

     301.4       279.8  
  

 

 

   

 

 

 

Operating income

   $ 199.4     $ 172.6  
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     4     6

Non-Medicare revenue

     16     18

Total admissions

     7     5

Total volume (2)

     5     7

Key Statistical Data - Total (3):

    

Medicare:

    

Admissions

     195,513       190,748  

Recertifications

     110,460       112,773  
  

 

 

   

 

 

 

Total volume

     305,973       303,521  

Completed episodes

     300,551       296,223  

Visits

     5,207,563       5,261,315  

Average revenue per completed episode (4)

   $ 2,920     $ 2,854  

Visits per completed episode (5)

     17.3       17.6  

Non-Medicare:

    

Admissions

     133,180       118,577  

Recertifications

     62,108       55,736  
  

 

 

   

 

 

 

Total volume

     195,288       174,313  

Visits

     3,065,745       2,772,339  

Total (3):

    

Visiting Clinician Cost per Visit

   $ 83.11     $ 81.88  

Clinical Manager Cost per Visit

     8.04       8.01  
  

 

 

   

 

 

 

Total Cost per Visit

   $ 91.15     $ 89.89  

Visits

     8,273,308       8,033,654  

 

(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 de novos.

(4)

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

(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.

 

8


Segment Information - Hospice

 

     For the
Three-Month Period
Ended December 31,
 
     2019     2018  

Financial Information (in millions):

    

Medicare

   $ 156.6     $ 103.5  

Non-Medicare

     8.0       5.3  
  

 

 

   

 

 

 

Net service revenue

     164.6       108.8  

Cost of service

     89.2       56.8  
  

 

 

   

 

 

 

Gross margin

     75.4       52.0  

Other operating expenses

     38.2       23.2  
  

 

 

   

 

 

 

Operating income

   $ 37.2     $ 28.8  
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     9     11

Hospice admissions

     1     12

Average daily census

     8     9

Key Statistical Data - Total (2):

    

Hospice admissions

     10,139       7,152  

Average daily census

     11,660       7,809  

Revenue per day, net

   $ 153.42     $ 151.46  

Cost of service per day

   $ 83.13     $ 79.02  

Average discharge length of stay

     100       103  

 

     For the Year
Ended December 31,
 
     2019     2018  

Financial Information (in millions):

    

Medicare

   $ 586.6     $ 390.2  

Non-Medicare

     30.6       20.7  
  

 

 

   

 

 

 

Net service revenue

     617.2       410.9  

Cost of service

     335.1       212.0  
  

 

 

   

 

 

 

Gross margin

     282.1       198.9  

Other operating expenses

     139.1       85.7  
  

 

 

   

 

 

 

Operating income

   $ 143.0     $ 113.2  
  

 

 

   

 

 

 

Same Store Growth (1):

    

Medicare revenue

     7     11

Hospice admissions

     4     8

Average daily census

     7     11

Key Statistical Data - Total (2):

    

Hospice admissions

     40,194       27,596  

Average daily census

     11,164       7,588  

Revenue per day, net

   $ 151.47     $ 148.36  

Cost of service per day

   $ 82.24     $ 76.53  

Average discharge length of stay

     98       100  

 

(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.

 

9


Segment Information - Personal Care

 

     For the
Three-Month Period
Ended December 31,
 
     2019      2018  

Financial Information (in millions):

     

Medicare

   $ —        $ —    

Non-Medicare

     19.9        21.6  
  

 

 

    

 

 

 

Net service revenue

     19.9        21.6  

Cost of service

     14.7        16.1  
  

 

 

    

 

 

 

Gross margin

     5.2        5.5  

Other operating expenses

     3.0        3.4  
  

 

 

    

 

 

 

Operating income

   $ 2.2      $ 2.1  
  

 

 

    

 

 

 

Key Statistical Data:

     

Billable hours

     802,225        890,696  

Clients served

     12,300        13,054  

Shifts

     359,255        406,119  

Revenue per hour

   $ 24.88      $ 24.24  

Revenue per shift

   $ 55.56      $ 53.16  

Hours per shift

     2.2        2.2  
     For the Year
Ended December 31,
 
     2019      2018  

Financial Information (in millions):

     

Medicare

   $ —        $ —    

Non-Medicare

     82.0        77.2  
  

 

 

    

 

 

 

Net service revenue

     82.0        77.2  

Cost of service

     61.1        58.8  
  

 

 

    

 

 

 

Gross margin

     20.9        18.4  

Other operating expenses

     12.5        13.1  
  

 

 

    

 

 

 

Operating income

   $ 8.4      $ 5.3  
  

 

 

    

 

 

 

Key Statistical Data:

     

Billable hours

     3,308,338        3,248,304  

Clients served

     17,364        17,981  

Shifts

     1,488,175        1,468,541  

Revenue per hour

   $ 24.80      $ 23.75  

Revenue per shift

   $ 55.13      $ 52.54  

Hours per shift

     2.2        2.2  

 

10


Segment Information - Corporate

 

     For the
Three-Month Period
Ended December 31,
 
     2019      2018  

Financial Information (in millions):

     

Other operating expenses

   $ 38.9      $ 35.0  

Depreciation and amortization

     4.5        1.9  
  

 

 

    

 

 

 

Total operating expenses

   $ 43.4      $ 36.9  
  

 

 

    

 

 

 
     For the Year
Ended December 31,
 
     2019      2018  

Financial Information (in millions):

     

Other operating expenses

   $ 160.9      $ 127.6  

Depreciation and amortization

     12.4        8.4  
  

 

 

    

 

 

 

Total operating expenses

   $ 173.3      $ 136.0  
  

 

 

    

 

 

 

 

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”) Reconciliation:

 

     For the Three-
Month Period
Ended December 31,
    For the Year Ended
December 31,
 
     2019     2018     2019     2018  

Net income attributable to Amedisys, Inc.

   $ 27,655     $ 27,461     $ 126,833     $ 119,346  

Add:

        

Income tax expense

     11,398       8,875       42,503       38,859  

Interest expense, net

     3,037       1,521       14,437       7,092  

Depreciation and amortization

     5,988       3,379       18,428       13,261  

Certain items (1)

     4,618       3,124       24,877       3,739  

Interest component of certain items (1)

     (451     (451     (1,789     (1,731
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA (2) (6)

   $ 52,245     $ 43,909     $ 225,289     $ 180,566  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Adjusted Net Service Revenue Reconciliation:

 

        
     For the Three-
Month Period
Ended December 31,
    For the Year Ended
December 31,
 
     2019     2018     2019     2018  

Net service revenue

   $ 500,678     $ 434,378     $ 1,955,633     $ 1,662,578  

Add:

        

Certain items (1)

     6       —         5,999       1,687  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net service revenue (3) (6)

   $ 500,684     $ 434,378     $ 1,961,632     $ 1,664,265  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

Adjusted Net Income Attributable to Amedisys, Inc Reconciliation:

 

 

   
     For the Three-
Month Period
Ended December 31,
    For the Year Ended
December 31,
 
     2019     2018     2019     2018  

Net income attributable to Amedisys, Inc.

   $ 27,655     $ 27,461     $ 126,833     $ 119,346  

Add:

        

Certain items (1)

     3,417       2,312       18,409       2,767  
  

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ 31,072     $ 29,773     $ 145,242     $ 122,113  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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

 

 

   
     For the Three-
Month Period
Ended December 31,
    For the Year Ended
December 31,
 
     2019     2018     2019     2018  

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

   $ 0.83     $ 0.84     $ 3.84     $ 3.55  

Add:

        

Certain items (1)

     0.10       0.07       0.56       0.08  
  

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ 0.94     $ 0.91     $ 4.40     $ 3.63  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

12


(1)

The following details the certain items for the three month periods and years ended December 31, 2019 and 2018:

Certain Items:

 

     For the Three-Month Period
Ended December 31, 2019
    For the Year Ended
December 31, 2019
 
     (Income) Expense     (Income) Expense  

Certain Items Impacting Net Service Revenue:

    

Contingency accrual

   $ —       $ 6,541  

Planned closures (7)

     6       (542

Certain Items Impacting Cost of Service:

    

Planned closures (7)

     2       1,174  

Certain Items Impacting Operating Expenses:

    

Planned closures (7)

     2       187  

Acquisition and integration costs

     1,718       16,111  

Legal fees - non-routine

     604       977  

Asset impairment

     1,470       1,470  

Certain Items Impacting Total Other Income (Expense):

    

Legal settlements

     —         (1,437

Other (income) expense, net

     816       396  
  

 

 

   

 

 

 

Total

   $ 4,618     $ 24,877  
  

 

 

   

 

 

 

Net of tax

   $ 3,417     $ 18,409  
  

 

 

   

 

 

 

Diluted EPS

   $ 0.10     $ 0.56  
  

 

 

   

 

 

 
     For the Three-Month Period
Ended December 31, 2018
    For the Year Ended
December 31, 2018
 
     (Income) Expense     (Income) Expense  

Certain Items Impacting Net Service Revenue:

    

Florida self-audit (pre-acquisition)

   $ —       $ 1,687  

Certain Items Impacting Operating Expenses:

    

Acquisition costs

     1,025       2,757  

Legal fees - non-routine

     56       1,465  

Indemnity receivable adjustment

     2,143       2,143  

Certain Items Impacting Total Other Income (Expense):

    

Legal settlements

     —         (1,437

Other (income) expense, net

     (100     (2,876
  

 

 

   

 

 

 

Total

   $ 3,124     $ 3,739  
  

 

 

   

 

 

 

Net of tax

   $ 2,312     $ 2,767  
  

 

 

   

 

 

 

Diluted EPS

   $ 0.07     $ 0.08  
  

 

 

   

 

 

 

 

(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.

 

13


(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 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.

(7)

Planned closures consist of in-patient units acquired from Compassionate Care Hospice whose operations ceased in April 2019.

 

14