Amedisys Reports First Quarter Financial Results and Updates 2013 Guidance

Amedisys Reports First Quarter Financial Results and Updates 2013 Guidance

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 first quarter ended March 31, 2013.


Three-Month Periods Ended March 31, 2013 and 2012

After adding back $2.0 million and $3.7 million ($1.2 million and $2.2 million, net of tax) or $0.04 and $0.07 per diluted share for legal fees associated with investigations, the following would have been our adjusted results:*

  • Net service revenue of $339.2 million compared to $370.8 million in 2012, a decrease of 8.5%.

  • Net income from continuing operations attributable to Amedisys, Inc., of $3.9 million compared to $8.6 million in 2012, a decrease of 54.8%.

  • Net income from continuing operations attributable to Amedisys, Inc. per diluted share of $0.13 compared to $0.29 per diluted share in 2012, a decrease of 55.2%.

  • Earnings before interest, taxes, depreciation and amortization attributable to continuing operations ("EBITDA") of $17.3 million compared to $26.9 million in 2012, a decrease of 35.8%.

William F. Borne, Chief Executive Officer stated, "Results for the first quarter were impacted by declining volumes and sequestration, but slightly offset by year-over-year increases in admissions and cost control efforts. Clearly, despite encouraging trends, quarterly performance did not meet our expectations. Consequently, we are implementing plans to consolidate or divest non-performing care centers, trim our corporate infrastructure and refine our patient care management strategy focused on delivering the optimal level of care to drive improved clinical outcomes for our patients. We believe these initiatives, along with a strong focus on volume growth and continued cost control efforts, will position Amedisys to capitalize on the changing healthcare landscape and continue to provide the best care for our patients in the lowest cost setting."

2013 Guidance

  • Net service revenue is anticipated to be in the range of $1.280 billion to $1.320 billion.

  • Diluted earnings per share is expected to be in the range of $0.45 to $0.55 based on an estimated 31.5 million shares outstanding.

This guidance excludes any one-time costs associated with our announced market exit activity or corporate expense initiatives. Our guidance includes an estimate of legal costs associated with our on-going government investigations.

We urge caution in considering the current trends and 2013 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, 2012, 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.

* See page 7 for the reconciliations of non-GAAP financial measures

Earnings Call and Webcast Information

To participate in the conference call, please call a few minutes before 10:00 a.m. ET on Tuesday, April 30, 2013, to either (877) 512-9171 (Toll free) or (815) 573-0979 (Toll), use conference ID #35067959. A replay of the conference call will be available through May 7, 2013. The replay dial in number is (855) 859-2056 (Toll free) or (404) 537-3406 (Toll), use conference ID #35067959.

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

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 legal fees associated with investigations, adjusted net income from continuing operations attributable to Amedisys, Inc., defined as net income from continuing operations attributable to Amedisys, Inc. plus legal fees associated with investigations, and adjusted net income from continuing operations attributable to Amedisys, Inc. per diluted share, defined as net income from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share plus the earnings per share effect of legal fees associated with investigations. 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

March 31, 2013

December 31, 2012

ASSETS

Current assets:

Cash and cash equivalents

$

7,021

$

14,545

Patient accounts receivable, net of allowance for doubtful accounts of $18,991 and $20,994

144,659

169,172

Prepaid expenses

14,478

10,631

Other current assets

16,229

11,440

Total current assets

182,387

205,788

Property and equipment, net of accumulated depreciation of $118,280, and $113,154

156,481

156,709

Goodwill

209,994

209,594

Intangible assets, net of accumulated amortization of $24,119 and $23,457

46,792

47,050

Deferred tax asset

91,808

92,804

Other assets, net

24,855

18,650

Total assets

$

712,317

$

730,595

LIABILITIES AND EQUITY

Current Liabilities:

Accounts payable

$

27,646

$

29,175

Payroll and employee benefits

78,919

79,341

Accrued expenses

57,054

54,855

Current portion of long-term obligations

35,807

35,807

Current portion of deferred income taxes

3,395

5,609

Total current liabilities

202,821

204,787

Long-term obligations, less current portion

42,952

66,904

Other long-term obligations

4,761

4,671

Total liabilities

250,534

276,362

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; 32,173,099 and 31,876,508 shares issued; and 31,382,932 and 31,086,619 shares outstanding

32

32

Additional paid-in capital

456,046

450,792

Treasury stock at cost, 790,167 and 789,889 shares of common stock

(17,119

)

(17,116

)

Accumulated other comprehensive income

15

15

Retained earnings

21,296

18,617

Total Amedisys, Inc. stockholders' equity

460,270

452,340

Noncontrolling interests

1,513

1,893

Total equity

461,783

454,233

Total liabilities and equity

$

712,317

$

730,595

Income Statement Information

For the Three-Month Periods Ended March 31,

2013

2012

Net service revenue

$

339,175

$

370,833

Cost of service, excluding depreciation and amortization

192,504

208,506

General and administrative expenses:

Salaries and benefits

82,794

87,077

Non-cash compensation

2,056

2,482

Other

43,562

44,394

Provision for doubtful accounts

3,967

5,863

Depreciation and amortization

10,123

10,054

Operating expenses

335,006

358,376

Operating income

4,169

12,457

Other (expense) income:

Interest income

11

15

Interest expense

(1,106

)

(2,074

)

Equity in earnings from equity investments

363

305

Miscellaneous, net

59

429

Total other expense, net

(673

)

(1,325

)

Income before income taxes

3,496

11,132

Income tax expense

(1,363

)

(4,620

)

Income from continuing operations

2,133

6,512

Discontinued operations, net of tax

(1,049

)

Net income

2,133

5,463

Net loss (income) attributable to noncontrolling interests

546

(43

)

Net income attributable to Amedisys, Inc.

$

2,679

$

5,420

Basic earnings per common share:

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

$

0.09

$

0.22

Discontinued operations, net of tax

(0.04

)

Net income attributable to Amedisys, Inc. common stockholders

$

0.09

$

0.18

Weighted average shares outstanding

30,640

29,389

Diluted earnings per common share:

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

$

0.09

$

0.22

Discontinued operations, net of tax

(0.04

)

Net income attributable to Amedisys, Inc. common stockholders

$

0.09

$

0.18

Weighted average shares outstanding

31,104

29,780

Amounts attributable to Amedisys, Inc. common stockholders:

Income from continuing operations

$

2,679

$

6,469

Discontinued operations, net of tax

(1,049

)

Net income

$

2,679

$

5,420

Cash Flow Information

For the Three-Month Periods Ended March 31,

2013

2012

Net cash provided by operating activities

$

32,416

$

10,927

Net cash used in investing activities

(16,825

)

(10,053

)

Net cash used in financing activities

(23,115

)

(7,588

)

Net decrease in cash and cash equivalents

(7,524

)

(6,714

)

Cash and cash equivalents at beginning of period

14,545

48,004

Cash and cash equivalents at end of period

$

7,021

$

41,290

Supplemental Information—Home Health

For the Three-Month Periods Ended March 31,

2013

2012

Financial Information (in millions):

Medicare

$

221.1

$

242.4

Non-Medicare

51.2

59.0

Net service revenue

272.3

301.4

Cost of service

157.1

172.0

Gross margin

115.2

129.4

Other operating expenses

89.7

97.8

Operating income

$

25.5

$

31.6

Key Statistical Data:

Medicare:

Same Store Volume (1):

Revenue