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
SELECT CONSOLIDATED FINANCIAL STATEMENT DATA AND SUPPLEMENTAL INFORMATION
(Amounts in thousands, except share, per share data and statistical information)
(Unaudited)

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
June 30,

For the Six-Month Periods Ended
June 30,

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