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, 2013December 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 $20,994144,659169,172
Prepaid expenses14,47810,631
Other current assets 16,229  11,440 
Total current assets182,387205,788
Property and equipment, net of accumulated depreciation of $118,280, and $113,154156,481156,709
Goodwill209,994209,594
Intangible assets, net of accumulated amortization of $24,119 and $23,45746,79247,050
Deferred tax asset91,80892,804
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 benefits78,91979,341
Accrued expenses57,05454,855
Current portion of long-term obligations35,80735,807
Current portion of deferred income taxes 3,395  5,609 
Total current liabilities202,821204,787
Long-term obligations, less current portion42,95266,904
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 outstanding3232
Additional paid-in capital456,046450,792
Treasury stock at cost, 790,167 and 789,889 shares of common stock(17,119)(17,116)
Accumulated other comprehensive income1515
Retained earnings 21,296  18,617 
Total Amedisys, Inc. stockholders' equity460,270452,340
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,
20132012
Net service revenue$339,175$370,833
Cost of service, excluding depreciation and amortization192,504208,506
General and administrative expenses:
Salaries and benefits82,79487,077
Non-cash compensation2,0562,482
Other43,56244,394
Provision for doubtful accounts3,9675,863
Depreciation and amortization 10,123  10,054 
Operating expenses 335,006  358,376 
Operating income4,16912,457
Other (expense) income:
Interest income1115
Interest expense(1,106)(2,074)
Equity in earnings from equity investments363305
Miscellaneous, net 59  429 
Total other expense, net (673) (1,325)
Income before income taxes3,49611,132
Income tax expense (1,363) (4,620)
Income from continuing operations2,1336,512
Discontinued operations, net of tax   (1,049)
Net income2,1335,463
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,
20132012
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,
20132012
Financial Information (in millions):
Medicare$221.1$242.4
Non-Medicare 51.2  59.0 
Net service revenue272.3301.4
Cost of service 157.1  172.0 
Gross margin115.2129.4
Other operating expenses 89.7  97.8 
 
Operating income$25.5 $31.6 
 
Key Statistical Data:
Medicare:
Same Store Volume (1):
Revenue Read Full Story

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