Amedisys Reports Second Quarter Financial Results
Amedisys Reports Second 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 second quarter ended June 30, 2013.
Three-Month Periods Ended June 30, 2013 and 2012
After adding back $5.1 million and $1.4 million ($3.1 million and $0.8 million, net of income tax) or $0.10 and $0.03 per diluted share for exit activity costs, the gain on sale of care centers and legal fees associated with investigations, the following would have been our adjusted results:
Net service revenue of $313.1 million compared to $363.1 million in 2012, a decrease of 13.7%.
Net income from continuing operations attributable to Amedisys, Inc., of $5.4 million compared to $8.7 million in 2012, a decrease of 38.0%.
Net income from continuing operations attributable to Amedisys, Inc. per diluted share of $0.17 compared to $0.29 per diluted share in 2012, a decrease of 41.4%.
Earnings before interest, taxes, depreciation and amortization attributable to continuing operations ("EBITDA") of $19.1 million compared to $26.6 million in 2012, a decrease of 28.3%.
Six-Month Periods Ended June 30, 2013 and 2012
After adding back $7.1 million and $5.1 million ($4.3 million and $3.0 million, net of income tax) or $0.14 and $0.10 per diluted share for exit activity costs, the gain on sale of care centers and legal fees associated with investigations, the following would have been our adjusted results:
Net service revenue of $639.2 million compared to $719.0 million in 2012, a decrease of 11.1%.
Net income from continuing operations attributable to Amedisys, Inc., of $9.8 million compared to $17.7 million in 2012, a decrease of 44.7%.
Net income from continuing operations attributable to Amedisys, Inc. per diluted share of $0.31 compared to $0.59 per diluted share in 2012, a decrease of 47.5%.
EBITDA of $37.0 million compared to $53.9 million in 2012, a decrease of 31.4%.
William F. Borne, Chief Executive Officer stated, "We are pleased to report adjusted earnings for the second quarter of $0.17 per share, an improvement of $0.03 sequentially. Despite a $0.09 negative impact from sequestration and continued lower volumes, reductions in operating expenses led to the improved results. We continue to make progress on numerous strategic initiatives focused on growth, increasing efficiency and continued improvement in patient outcomes."
2013 Guidance
Net service revenue is anticipated to be in the range of $1.240 billion to $1.280 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 8 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 Wednesday, July 31, 2013, to either (877) 512-9171 (Toll free) or (815) 573-0979 (Toll), use conference ID #22419959. A replay of the conference call will be available through August 7, 2013. The replay dial in number is (855) 859-2056 (Toll free) or (404) 537-3406 (Toll), use conference ID #22419959.
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, our ability to divest care centers currently held for sale, 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 exit activity costs, the gain on sale of care centers and 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 exit activity costs, the gain on sale of care centers and 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 exit activity costs, the gain on sale of care centers and 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 | ||||||||
Balance Sheet Information | ||||||||
June 30, 2013 | December 31, 2012 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 30,118 | $ | 14,545 | ||||
Patient accounts receivable, net of allowance for doubtful accounts of $17,610 and $20,994 | 124,766 | 169,172 | ||||||
Prepaid expenses | 13,369 | 10,631 | ||||||
Other current assets | 12,006 | 11,440 | ||||||
Assets held for sale | 1,550 | — | ||||||
Total current assets | 181,809 | 205,788 | ||||||
Property and equipment, net of accumulated depreciation of $120,012, and $113,154 | 156,887 | 156,709 | ||||||
Goodwill | 209,260 | 209,594 | ||||||
Intangible assets, net of accumulated amortization of $24,560 and $23,457 | 43,109 | 47,050 | ||||||
Deferred tax asset | 85,256 | 92,804 | ||||||
Other assets, net | 23,932 | 18,650 | ||||||
Total assets | $ | 700,253 | $ | 730,595 | ||||
LIABILITIES AND EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable | $ | 21,658 | $ | 29,175 | ||||
Payroll and employee benefits | 76,205 | 79,341 | ||||||
Accrued expenses | 54,175 | 54,855 | ||||||
Current portion of long-term obligations | 35,807 | 35,807 | ||||||
Current portion of deferred income taxes | 3,169 | 5,609 | ||||||
Total current liabilities | 191,014 | 204,787 | ||||||
Long-term obligations, less current portion | 39,000 | 66,904 | ||||||
Other long-term obligations | 5,209 | 4,671 | ||||||
Total liabilities | 235,223 | 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; 32,973,576 and 31,876,508 share issued; and 32,106,174 and 31,086,619 share outstanding | 33 | 32 | ||||||
Additional paid-in capital | 458,475 | 450,792 | ||||||
Treasury stock at cost, 867,402 and 789,889 shares of common stock | (18,056 | ) | (17,116 | ) | ||||
Accumulated other comprehensive income | 15 | 15 | ||||||
Retained earnings | 23,136 | 18,617 | ||||||
Total Amedisys, Inc. stockholders' equity | 463,603 | 452,340 | ||||||
Noncontrolling interests | 1,427 | 1,893 | ||||||
Total equity | 465,030 | 454,233 | ||||||
Total liabilities and equity | $ | 700,253 | $ | 730,595 | ||||
Income Statement Information | ||||||||||||||||
For the Three-Month Periods Ended | For the Six-Month Periods Ended | |||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||
Net service revenue | $ | 313,148 | $ | 363,068 | $ | 639,201 | $ | 719,056 | ||||||||
Cost of service, excluding depreciation and amortization | 176,077 | 202,586 | 360,233 | 401,637 | ||||||||||||
General and administrative expenses: | ||||||||||||||||
Salaries and benefits | 74,601 | 82,983 | 154,043 | 166,270 | ||||||||||||
Non-cash compensation | 1,224 | 2,298 | 3,280 | 4,780 | ||||||||||||
Other | 41,121 | 45,632 | 82,739 | 88,240 | ||||||||||||
Provision for doubtful accounts | 4,658 | 4,534 | 8,502 | 10,217 | ||||||||||||
Depreciation and amortization | 11,674 | 9,678 | 21,621 | 19,515 | ||||||||||||
Operating expenses | 309,355 | 347,711 | 630,418 | 690,659 | ||||||||||||
Operating income | 3,793 | 15,357 | 8,783 | 28,397 | ||||||||||||
Other (expense) income: | ||||||||||||||||
Interest income | 11 | 28 | 22 | 42 | ||||||||||||
Interest expense | (730 | ) | (2,002 | ) | (1,836 | ) | (4,076 | ) | ||||||||
Equity in earnings from equity investments | 337 | 396 | 700 | 701 | ||||||||||||
Gain on sale of care centers | 357 | — | 357 | — | ||||||||||||
Miscellaneous, net | 136 | (126 | ) | 196 | 309 | |||||||||||
Total other expense, net | 111 | (1,704 | ) | (561 | ) | (3,024 | ) | |||||||||
Income before income taxes | 3,904 | 13,653 | 8,222 | 25,373 | ||||||||||||
Income tax expense | (1,566 | ) | (5,666 | ) | (3,260 | ) | (10,530 | ) | ||||||||
Income from continuing operations | 2,338 | 7,987 | 4,962 | 14,843 | ||||||||||||
Discontinued operations, net of tax | (490 | ) | (21 | ) | (982 | ) | (1,414 | ) | ||||||||
Net income | 1,848 | 7,966 | 3,980 | 13,429 | ||||||||||||
Net (income) loss attributable to noncontrolling interests | (7 | ) | (84 | ) | 539 | (127 | ) | |||||||||
Net income attributable to Amedisys, Inc. | $ | 1,841 | $ | 7,882 | $ | 4,519 | $ | 13,302 | ||||||||
Basic earnings per common share: | ||||||||||||||||
Income from continuing operations attributable to Amedisys, Inc. common stockholders | $ | 0.07 | $ | 0.26 | $ | 0.18 | $ | 0.50 | ||||||||
Discontinued operations, net of tax | (0.01 | ) | — | (0.03 | ) | (0.05 | ) | |||||||||
Net income attributable to Amedisys, Inc. common stockholders | $ | 0.06 | $ | 0.26 | $ | 0.15 | $ | 0.45 | ||||||||
Weighted average shares outstanding | 31,160 | 29,780 | 30,900 | 29,584 | ||||||||||||
Diluted earnings per common share: | ||||||||||||||||
Income from continuing operations attributable to Amedisys, Inc. common stockholders | $ | 0.07 | $ | 0.26 | $ | 0.17 | $ | 0.49 | ||||||||
Discontinued operations, net of tax | (0.01 | ) | — | (0.03 | ) | (0.05 | ) | |||||||||
Net income attributable to Amedisys, Inc. common stockholders | $ | 0.06 | $ | 0.26 | ||||||||||||
