Amedisys, Inc. (NASDAQ:AMED), a leading home health, hospice and
personal care company, today announced preliminary financial
results for the third quarter ended September 30, 2017. While
these preliminary results are subject to completion of the
Company’s quarterly financial and accounting procedures, Amedisys
credits the strong preliminary results to the execution of our
strategy put in place in 2015 by the Company’s leadership team and
its more than 17,000 employees nationwide.
On a GAAP basis, Amedisys expects to report
third quarter 2017 net service revenues of approximately $380
million and net income attributable to Amedisys, Inc. per diluted
share between $0.40 and $0.42. As previously announced, these
results were impacted by certain pretax charges, including a
reduction of revenues associated with a Florida ZPIC audit and
costs associated with our home health closures and restructuring
plan. As previously disclosed, upon the completion of the home
health restructure plan and the closure and consolidation of care
centers, we anticipate annual improvements in earnings before
interest, taxes, depreciation and amortization (“EBITDA”) in the
range of $7 million to $9 million in 2018. Other less significant
items also impacted third quarter operating results. We believe
these items, in the aggregate, will have the effect of reducing
diluted earnings per common share by $0.13 in the quarter.
For the third quarter of 2016, Amedisys
reported, on a GAAP basis, net service revenues of $362 million and
net income attributable to Amedisys, Inc. per diluted share of
$0.34.
On an adjusted basis, Amedisys expects to report
third quarter 2017 net service revenues of approximately $386
million, adjusted EBITDA between $36.0 million and $37.0
million and net income attributable to Amedisys, Inc. per diluted
share between $0.54 and $0.56. Both our GAAP and adjusted results
include additional costs and volume disruption related to Hurricane
Irma. These adjusted results, compared to results generated
in the same period in 2016, represent expected year-over-year
revenue growth of 7%, EBITDA growth of over 40% and EPS growth of
over 50%.
For the third quarter of 2016, Amedisys
reported, on an adjusted basis, revenues of $362 million, EBITDA of
$25.6 million and net income attributable to Amedisys, Inc. per
diluted share of $0.36.
Paul Kusserow, President and Chief Executive
Officer of Amedisys, remarked, “We are very pleased with our
preliminary third quarter results. Our solid revenue growth, along
with our improving cost structure, propelled significant growth in
earnings per share compared to a year ago. We have delivered
strong results to our shareholders and have hit our efficiency
targets that we first laid out in early 2016. As we progress
toward the end of the year, I am increasingly encouraged by our
revenue growth and the operational results of our business segments
and the foundation we are building for 2018 and beyond.”
Kusserow continued, “In particular, I am proud
of the efforts of our operators and clinicians in the areas
impacted by Hurricane Irma. Even as some of our team
experienced their own hardships, they worked diligently to make
sure our patients were cared for before, during and after the
storm. Their efforts significantly mitigated the potential
impact of this disruptive event. I look forward to further
discussing our third quarter results during our upcoming conference
call.”
The Company plans to issue its earnings release
for the quarter after the market closes on Tuesday, November
7th. The conference call to discuss results is
scheduled for 11:00 a.m. Eastern Time (10:00 a.m. Central Time) on
Wednesday, November 8th. To participate on the conference
call, please call a few minutes before 11:00 a.m. ET to either
(877) 524-8416 (Toll free) or (412) 902-1028 (Toll). A replay
of the conference call will be available through December 8,
2017. The replay dial in number is (877) 660-6853 (Toll free)
or (201) 612-7415 (Toll) and use conference ID #13672018.
A live webcast of the call will be accessible
through our website on our Investor Relations section at the
following web address: http://investors.amedisys.com.
Information Regarding Preliminary
Financial Results
The preliminary estimated financial information
contained in this press release for the quarter ended September 30,
2017 reflects management’s estimates based solely upon information
available to it as of the date of this press release and is not
final. The preliminary estimated financial information presented
above has not been reviewed by our independent registered public
accounting firm, KPMG LLP. Accordingly, KPMG LLP does not express
an opinion on or provide any other form of assurance with respect
thereto and assumes no responsibility for this information. The
information presented above should not be considered a substitute
for full unaudited financial statements for the quarter ended
September 30, 2017 once they become available and should not be
regarded as a representation by us or our management as to our
actual financial results for the quarter ended September 30, 2017.
The ranges for the preliminary estimated financial results
described above constitute forward-looking statements. The
preliminary estimated financial information presented above is
subject to change, and our actual financial results may differ from
such preliminary estimates and such differences could be material.
Accordingly, you should not place undue reliance upon these
preliminary estimates.
Non-GAAP Financial Measures
This press release includes reconciliations of
the most comparable financial measures calculated and presented in
accordance with accounting principles generally accepted in the
U.S. (“GAAP”) to non-GAAP financial measures. The non-GAAP
financial measures as defined under SEC rules are as follows: (1)
adjusted EBITDA, defined as net income attributable to Amedisys,
Inc. before provision for income taxes, net interest expense and
depreciation and amortization, excluding certain items; (2)
adjusted net service revenue, defined as net service revenue
excluding certain items; and (3) adjusted net income attributable
to Amedisys, Inc. per diluted share, defined as net income
attributable to Amedisys, Inc. common stockholders per diluted
share excluding certain items. Management believes that these
non-GAAP financial measures, when reviewed in conjunction with GAAP
financial measures, are useful gauges of our current performance
and are also included in internal management reporting. These
non-GAAP financial measures should be considered in addition to,
and not more meaningful than or as an alternative to the GAAP
financial measures presented in this earnings release and the
company’s financial statements. Non-GAAP measures as presented
herein may not be comparable to similarly titled measures reported
by other companies since not all companies calculate these non-GAAP
measures consistently.
About Amedisys
Amedisys, Inc. is a leading healthcare at home
Company delivering personalized home health, hospice and personal
care. Amedisys is focused on delivering the care that is best for
our patients, whether that is home-based personal care; recovery
and rehabilitation after an operation or injury; care focused on
empowering them to manage a chronic disease; or hospice care at the
end of life. More than 2,200 hospitals and 61,900 physicians
nationwide have chosen Amedisys as a partner in post-acute care.
Founded in 1982, headquartered in Baton Rouge, LA with an executive
office in Nashville, TN, Amedisys is a publicly held company. With
more than 17,000 employees, in 425 care centers in 34 states,
Amedisys is dedicated to delivering the highest quality of care to
the doorsteps of more than 340,000 patients in need every year. For
more information about the Company, please visit:
www.amedisys.com.
We use our company website as a channel of
distribution for important company information. Important
information, including press releases, investor 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. Visitors to our website can also register to
receive automatic e-mail and other notifications altering 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,” “will”
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 healthcare
industry, our ability to integrate our personal care segment into
our business efficiently, 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 by federal and state governments, future cost
containment initiatives undertaken by third-party payors, our
access to financing, 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, manage and keep our information systems secure, our
ability to comply with requirements stipulated in our corporate
integrity agreement and changes in law or developments with respect
to any litigation relating to the Company, including 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.
Contact:
Amedisys,
Inc.
David CastilleManaging Director,
Treasury/Finance855-259-2046IR@amedisys.com
|
AMEDISYS, INC. AND SUBSIDIAIRIES |
|
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
TO GAAP FINANCIAL MEASURES |
|
|
(Amounts in thousands) |
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
Adjusted Net Service Revenue Reconciliation: |
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Month Period Ended September 30,
2017 |
|
|
Net service
revenue |
|
$ |
380,000 |
|
|
|
Add: |
|
|
|
|
|
|
Certain items (1) |
|
|
6,506 |
|
|
|
Adjusted
net service revenue (2) (5) |
|
$ |
386,506 |
|
|
|
|
|
|
|
|
|
|
Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization ("Adjusted EBITDA"): |
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Month Period Ended September 30,
2017 |
|
|
Net income
attributable to Amedisys, Inc. |
|
$ |
13,665 – 14,665 |
|
|
|
Add: |
|
|
|
|
|
|
Income tax expense |
|
|
9,364 |
|
|
|
|
Interest expense,
net |
|
|
1,291 |
|
|
|
|
Depreciation and
amortization |
|
|
4,185 |
|
|
|
|
Certain items (1) |
|
|
7,590 |
|
|
|
|
Interest component of
certain items (1) |
|
|
(95 |
) |
|
|
Adjusted
EBITDA (3) (5) |
|
$ |
36,000 – 37,000 |
|
|
|
Adjusted Net Income Attributable to Amedisys, Inc. per
Diluted Share: |
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Month Period Ended September 30,
2017 |
|
|
Net income
attributable to Amedisys, Inc. common stockholders per diluted
share |
|
|
$0.40 - $0.42 |
|
|
Add: |
|
|
|
|
|
|
Certain items (1) |
|
|
0.13 |
|
|
Adjusted
net income attributable to Amedisys, Inc. common stockholders per
diluted share (4) (5) |
|
|
$0.54 - $0.56 |
|
(1) The following details the certain items for
the three month period ended September 30, 2017:
|
Certain
Items: |
|
|
|
|
|
|
|
For the Three Month Period Ended September 30,
2017 |
|
|
|
|
(Income) Expense |
|
|
Certain Items
Impacting Net Service Revenue: |
|
|
|
|
|
Florida ZPIC Audit |
|
$ |
6,506 |
|
|
|
Certain Items
Impacting Operating Expenses: |
|
|
|
|
|
Legal fees -
non-routine |
|
|
176 |
|
|
|
Exit and restructuring
activity |
|
|
1,670 |
|
|
|
Certain Items
Impacting Total Other Income (Expense): |
|
|
|
|
|
Legal settlements |
|
|
(647 |
) |
|
|
Miscellaneous, other
(income) expense, net |
|
|
(115 |
) |
|
|
Total |
|
$ |
7,590 |
|
|
|
Net of tax |
|
$ |
4,592 |
|
|
|
Diluted EPS |
|
$ |
0.13 |
|
|
(2) Adjusted net service revenue is defined as
net service revenue plus certain items as described in footnote
1.(3) Adjusted EBITDA is defined as net income attributable to
Amedisys, Inc. before provision for income taxes, net interest
expense and depreciation and amortization, excluding certain items
as described in footnote 1. (4) Adjusted net income attributable to
Amedisys, Inc. common stockholders per diluted share is defined as
diluted income per share calculated in accordance with GAAP
excluding the earnings per share effect of certain items as
described in footnote 1. (5) Adjusted net service revenue, adjusted
EBITDA and adjusted net income attributable to Amedisys, Inc.
common stockholders per diluted share should not be considered as
an alternative to, or more meaningful than, income before income
taxes or other measure calculated in accordance with GAAP. These
calculations may not be comparable to a similarly titled measure
reported by other companies, since not all companies calculate
these non-GAAP financial measures in the same manner.
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