Amedisys Reports Second Quarter Financial Results

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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 $20,994124,766169,172
Prepaid expenses13,36910,631
Other current assets12,00611,440
Assets held for sale 1,550   
 
Total current assets181,809205,788
Property and equipment, net of accumulated depreciation of $120,012, and $113,154156,887156,709
Goodwill209,260209,594
Intangible assets, net of accumulated amortization of $24,560 and $23,45743,10947,050
Deferred tax asset85,25692,804
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 benefits76,20579,341
Accrued expenses54,17554,855
Current portion of long-term obligations35,80735,807
Current portion of deferred income taxes 3,169  5,609 
 
Total current liabilities191,014204,787
Long-term obligations, less current portion39,00066,904
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 outstanding3332
Additional paid-in capital458,475450,792
Treasury stock at cost, 867,402 and 789,889 shares of common stock

(18,056

)

(17,116

)

Accumulated other comprehensive income1515
Retained earnings 23,136  18,617 
 
Total Amedisys, Inc. stockholders' equity463,603452,340
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 20122013 2012
Net service revenue$313,148$363,068$639,201$719,056
Cost of service, excluding depreciation and amortization176,077202,586360,233401,637
General and administrative expenses:
Salaries and benefits74,60182,983154,043166,270
Non-cash compensation1,2242,2983,2804,780
Other41,12145,63282,73988,240
Provision for doubtful accounts4,6584,5348,50210,217
Depreciation and amortization 11,674  9,678  21,621  19,515 
 
Operating expenses 309,355  347,711  630,418  690,659 
 
Operating income3,79315,3578,78328,397
Other (expense) income:
Interest income11282242
Interest expense(730)(2,002)(1,836)(4,076)
Equity in earnings from equity investments337396700701
Gain on sale of care centers357357
Miscellaneous, net 136  (126) 196  309 
 
Total other expense, net 111  (1,704) (561) (3,024)
 
Income before income taxes3,90413,6538,22225,373
Income tax expense (1,566) (5,666) (3,260) (10,530)
 
Income from continuing operations2,3387,9874,96214,843
Discontinued operations, net of tax (490) (21) (982) (1,414)
 
Net income1,8487,9663,98013,429
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  Read Full Story

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