Amedisys Reports Third Quarter Financial Results

Amedisys Reports Third Quarter Financial Results

Amedisys to Host Conference Call Today At 10:00 A.M. ET

BATON ROUGE, La.--(BUSINESS WIRE)-- Amedisys, Inc. (NAS: AMED) , a leading home health and hospice company, today reported its financial results for the third quarter ended September 30, 2012.


Three-Month Periods Ended September 30, 2012 and 2011

• After adding back $574.1 million ($434.6 million, net of income tax) or $15.10 per diluted share for the goodwill and other intangibles impairment charge in 2011, the following would have been our adjusted results:

• Net service revenue of $375.6 million compared to $370.3 million in 2011, an increase of $5.3 million or 1.4%.

• Net income from continuing operations attributable to Amedisys, Inc., of $10.0 million compared to $12.3 million in 2011, a decrease of 19.2%.

• Net income from continuing operations attributable to Amedisys, Inc. per diluted share of $0.33 compared to $0.42 per diluted share in 2011, a decrease of 21.4%.

• Earnings before interest, taxes, depreciation and amortization attributable to continuing operations ("EBITDA") of $24.9 million compared to $29.0 million in 2011, a decrease of 14.0%.

Nine-Month Periods Ended September 30, 2012 and 2011

• After adding back $574.1 million ($434.6 million, net of income tax) or $15.18 per diluted share for the goodwill and other intangibles impairment charge in 2011, the following would have been our adjusted results:

• Net service revenue of $1,124.9 million compared to $1,098.0 million in 2011, an increase of $26.9 million or 2.5%.

• Net income from continuing operations attributable to Amedisys, Inc., of $24.4 million compared to $52.2 million in 2011, a decrease of 53.2%.

• Net income from continuing operations attributable to Amedisys, Inc. per diluted share of $0.81 compared to $1.80 per diluted share in 2011, a decrease of 55.0%.

• EBITDA of $73.8 million compared to $118.0 million in 2011, a decrease of 37.5%.

William F. Borne, Chief Executive Officer stated, "Overall, we were pleased with bottom line results for the quarter and remain on pace to meet our earnings plans for the year. Job and investment tax credits benefitted quarterly results. Operationally, we displayed our second consecutive quarter of positive year-over-year episodic admissions growth, continued to grow our managed care business and our hospice average census was up considerably. Our focus remains on providing excellent care to our patients, growing our business and achieving greater efficiencies as we navigate reimbursement pressures."

2012 Guidance

• Net service revenue is anticipated to be in the range of $1.485 billion to $1.505 billion.

• Diluted earnings per share is expected to be in the range of $1.00 to $1.06 based on an estimated 30.2 million shares outstanding.

This guidance excludes the effects of any future acquisitions, if any are made, any costs associated with the closing of our new credit agreement or any severance related charges.

We urge caution in considering the current trends and 2012 guidance disclosed in this press release. The home health and hospice industry is highly competitive and subject to intensive regulations, and trends and guidance are subject to numerous factors, risks, and uncertainties, some of which are referenced in the cautionary language below and others that are described more fully in our reports filed with the Securities and Exchange Commission ("SEC") including our Annual Report on Form 10-K for the fiscal year ended December 31, 2011, 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. We disclaim any obligations to update disclosed information on trends.

Earnings Call and Webcast Information

To participate in the conference call, please dial (877) 490-9717 (Toll free) or (704) 385-4855 (Toll) a few minutes before 10:00 a.m. ET on Tuesday, November 6, 2012. A replay of the conference call will be available through November 13, 2012. The replay dial in number is (855) 859-2056 (Toll free) or (404) 537-3406 (Toll). The replay pin number is 43473527.

The call will also be available through our website and for seven days thereafter at the following web address: http://www.amedisys.com/investors.

We are headquartered in Baton Rouge, Louisiana. Our common stock trades on the NASDAQ Global Select Market under the symbol "AMED."

Additional information

Our company website address is www.amedisys.com. We use our website as a channel of distribution for important company information. Important information, including press releases, analyst 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. We also use our website to expedite public access to time-critical information regarding our company in advance of or in lieu of distributing a press release or a filing with the SEC disclosing the same information. Therefore, investors should look to the Investor Relations subpage of our website for important and time-critical information. 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 home health 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 attract and retain qualified personnel, changes in payments and covered services due to the economic downturn and deficit spending by Federal and State governments, future cost containment initiatives undertaken by third-party payors, our access to financing due to the volatility and disruption of the capital and credit markets, 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 and manage our information systems, changes in or developments with respect to any litigation or investigations relating to the Company, including the SEC investigation and the U.S. Department of Justice Civil Investigative Demand and 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.

Non-GAAP Financial Measures

This press release includes the following non-GAAP financial measures as defined under SEC rules: EBITDA, defined as net income from continuing operations attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization, adjusted EBITDA, defined as EBITDA plus the goodwill and other intangibles impairment charge, adjusted net income from continuing operations attributable to Amedisys, Inc., defined as net income (loss) from continuing operations attributable to Amedisys, Inc. plus the goodwill and other intangibles impairment charge and adjusted net income from continuing operations attributable to Amedisys, Inc. per diluted share, defined as net income (loss) from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share plus the earnings per share effect of the goodwill and other intangibles impairment charge. In accordance with SEC rules, we have provided herein a reconciliation of these non-GAAP financial measures to the most directly comparable measures under GAAP. Management believes that these are useful gauges of our performance and are common measures used in our industry to assess relative financial performance among companies.

AMEDISYS, INC. AND SUBSIDIARIES

SELECT CONSOLIDATED FINANCIAL STATEMENT DATA AND SUPPLEMENTAL INFORMATION

(Amounts in thousands, except share, per share data and statistical information)


(Unaudited)

Balance Sheet Information

September 30, 2012

December 31, 2011

ASSETS

Current assets:

Cash and cash equivalents

$

39,106

$

48,004

Patient accounts receivable, net of allowance for doubtful accounts of $20,447 and $17,438

163,461

148,061

Prepaid expenses

10,646

11,321

Other current assets

20,635

24,630

Total current assets

233,848

232,016

Property and equipment, net of accumulated depreciation of $105,157, and $94,266

150,947

148,536

Goodwill

367,495

334,695

Intangible assets, net of accumulated amortization of $22,745 and $20,611

51,959

50,067

Deferred tax asset

54,512

68,649

Other assets, net

16,963

24,322

Total assets

$

875,724

$

858,285

LIABILITIES AND EQUITY

Current Liabilities:

Accounts payable

$

21,690

$

25,475

Payroll and employee benefits

81,751

82,130

Accrued expenses

64,460

68,493

Current portion of long-term obligations

54,307

33,888

Current portion of deferred income taxes

9,249

11,748

Total current liabilities

231,457

221,734

Long-term obligations, less current portion

67,856

111,551

Other long-term obligations

4,431

4,852

Total liabilities

303,744

338,137

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; 32,423,585 and 31,017,363 share issued; and 31,640,832 and 30,328,549 share outstanding

32

30

Additional paid-in capital

446,233

432,390

Treasury stock at cost, 782,753 and 688,814 shares of common stock

(17,034

)

(15,770

)

Accumulated other comprehensive income

15

13

Retained earnings

125,429

102,205

Total Amedisys, Inc. stockholders' equity

554,675

518,868

Noncontrolling interests

17,305

1,280

Total equity

571,980

520,148

Total liabilities and equity

$

875,724

$

858,285

Statement of Operations Information

For the Three-Month Periods Ended
September 30,

For the Nine-Month Periods Ended
September 30,

2012

2011

2012

2011

Net service revenue

$

375,625

$

370,288

$

1,124,956

$

1,098,026

Cost of service, excluding depreciation and amortization

214,131

202,093

634,903

578,823

General and administrative expenses:

Salaries and benefits

81,627

85,092

255,203

247,175

Non-cash compensation

1,285

3,150

6,065

8,265

Other

48,261

46,711

139,941

136,228

Provision for doubtful accounts

5,677

4,354

16,235

9,734

Depreciation and amortization

9,963

9,659

29,922

28,389

Goodwill and other intangibles impairment charge

574,114

574,114

Operating expenses

360,944

925,173

1,082,269

1,582,728

Operating income (loss)

14,681

(554,885

)

42,687

(484,702

)

Other (expense) income:

Interest income

10

18

52

225

Interest expense

(1,982

)

(2,187

)

(6,058

)

(6,693

)

Equity in earnings from equity investments

390

325

1,091

1,114

Miscellaneous, net

(14

)

(172

)

281

(843

)

Total other expense, net

(1,596

)

(2,016

)

(4,634

)

(6,197

)

Income (loss) before income taxes

13,085

(556,901

)

38,053

(490,899

)

Income tax (expense) benefit

(3,049

)

134,686

(13,411

)

108,631

Income (loss) from continuing operations

10,036

(422,215

)

24,642

(382,268

)

Discontinued operations, net of tax

(41

)

(1,482

)

(1,218

)

(4,394

)

Net income (loss)

9,995

(423,697

)

23,424

(386,662

)

Net income attributable to noncontrolling interests

(73

)

(25

)

(200

)

(116

)

Net income (loss) attributable to Amedisys, Inc.

$

9,922

$

(423,722

)$

23,224

$

(386,778

)

Basic earnings per common share:

Income (loss) from continuing operations attributable to Amedisys, Inc. common stockholders

$

0.33

$

(14.68

)

$

0.82

$

(13.38

)

Discontinued operations, net of tax

(0.05

)

(0.04

)

(0.15

)

Net income (loss) attributable to Amedisys, Inc. common stockholders

$

0.33

$

(14.73

)

$

0.78

$

(13.53

)

Weighted average shares outstanding

30,055

28,770

29,741

28,587

Diluted earnings per common share:

Income (loss) from continuing operations attributable to Amedisys, Inc. common stockholders

$

0.33

$

(14.68

)

$

0.81

$

(13.38

)

Discontinued operations, net of tax

(0.05

)

(0.04

)

(0.15

)

Net income (loss) attributable to Amedisys, Inc. common stockholders

$

0.33

$

(14.73

)

$

0.77

$

(13.53

)

Weighted average shares outstanding

30,423

28,770

30,068

28,587

Amounts attributable to Amedisys, Inc. common stockholders:

Income (loss) from continuing operations

$

9,963