Amedisys, Inc. (Nasdaq:AMED), a leading home health and hospice
company, today reported its financial results for the first quarter
ended March 31, 2015.
Three-Month Periods Ended March 31, 2015 and 2014
- After adjusting for the 2015 period, $74.0 million ($44.8
million, net of income tax ) or $1.37 per diluted share and for the
2014 period $16.1 million ($9.9 million, net of income tax) or
$0.31 per diluted share for certain items*, our adjusted results
from continuing operations were as follows:
- Net service revenue of $301.6 million compared to $298.7
million in 2014.
- Net income from continuing operations attributable to Amedisys,
Inc. of $9.8 million compared to net loss from continuing
operations of $2.2 million in 2014. (Net loss from continuing
operations attributable to Amedisys, Inc. of $35.0 million compared
to net loss from continuing operations attributable to Amedisys,
Inc. of $12.1 million in 2014 on a GAAP basis.)
- Net income from continuing operations attributable to Amedisys,
Inc. per diluted share of $0.30 compared to net loss from
continuing operations attributable to Amedisys, Inc. of $0.07 per
diluted share in 2014. (Net loss from continuing operations
attributable to Amedisys, Inc. per diluted share $1.07 compared to
net loss from continuing operations attributable to Amedisys Inc.
per diluted share of $0.38 per diluted share in 2014 on a GAAP
basis.)
- Earnings before interest, taxes, depreciation and amortization
attributable to continuing operations ("EBITDA") of $26.4 million
compared to $5.5 million in 2014.
Paul B. Kusserow, President and Chief Executive Officer stated,
"With these strong first quarter results, Amedisys continues its
upward trajectory. During the first few months of the year, we've
brought world class talent to our leadership team and made major
operational decisions that strongly position us for continued
growth and margin expansion."
We urge caution in considering the current trends disclosed in
this press release. The home health and hospice industry is highly
competitive and subject to intensive regulations, and trends 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, 2014,
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 section titled "Reconciliation of Non-GAAP Measures to
GAAP Financial Statements" for explanation of these certain items
and the reconciliations of non-GAAP financial measures.
Earnings Call and Webcast Information
To participate on the conference call, please call a few minutes
before 11:00 a.m. ET to either (877) 512-9171 (Toll free) or (815)
573-0979, use conference ID #30632022. A replay of the conference
call will be available through May 29, 2015. The replay dial in
number is (855) 859-2056 (Toll free) or (404) 537-3406 (Toll) and
use conference ID #30632022.
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.
Amedisys, Inc. (the "Company") is headquartered in Baton Rouge,
Louisiana and 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, 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.
Non-GAAP Financial Measures
This press release includes the following non-GAAP financial
measures as defined under SEC rules: EBITDA, defined as net loss
from continuing operations attributable to Amedisys, Inc. before
provision for income taxes, net interest expense and depreciation
and amortization, adjusted EBITDA, defined as EBITDA excluding
certain other items, adjusted net income (loss) from continuing
operations attributable to Amedisys, Inc., defined as net loss from
continuing operations attributable to Amedisys, Inc. excluding
certain other items, and adjusted net income (loss) from continuing
operations attributable to Amedisys, Inc. per diluted share,
defined as net loss from continuing operations attributable to
Amedisys, Inc. common stockholders per diluted share excluding
certain other items. 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, 2015 |
December 31, 2014 |
ASSETS |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 3,132 |
$ 8,032 |
Patient accounts receivable, net of
allowance for doubtful accounts of $14,845 and $14,317 |
110,651 |
99,325 |
Prepaid expenses |
8,504 |
8,493 |
Other current assets |
23,556 |
19,708 |
|
|
|
Total current assets |
145,843 |
135,558 |
|
|
|
Property and equipment, net of
accumulated depreciation of $151,311 and $146,438 |
57,088 |
137,455 |
Goodwill |
205,587 |
205,587 |
Intangible assets, net of accumulated
amortization of $25,374 |
33,193 |
33,193 |
Deferred income taxes |
146,565 |
124,788 |
Other assets, net |
35,051 |
33,161 |
|
|
|
Total assets |
$ 623,327 |
$ 669,742 |
|
|
|
LIABILITIES AND
EQUITY |
|
|
Current Liabilities: |
|
|
Accounts payable |
$ 23,651 |
$ 16,056 |
Payroll and employee benefits |
69,791 |
75,553 |
Accrued expenses |
56,763 |
56,329 |
Current portion of long-term
obligations |
12,000 |
12,000 |
Current portion of deferred income
taxes |
2,029 |
2,385 |
|
|
|
Total current
liabilities |
164,234 |
162,323 |
Long-term obligations, less current
portion |
86,444 |
104,372 |
Other long-term obligations |
5,214 |
5,285 |
|
|
|
Total liabilities |
255,892 |
271,980 |
|
|
|
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; 34,618,817 and 34,569,526 shares
issued; and 33,643,863 and 33,594,572 shares outstanding |
35 |
35 |
Additional paid-in capital |
486,267 |
481,762 |
Treasury stock at cost, 974,954 shares of
common stock |
(19,860) |
(19,860) |
Accumulated other comprehensive
income |
15 |
15 |
Retained earnings |
(99,794) |
(64,785) |
|
|
|
Total Amedisys, Inc.
stockholders' equity |
366,663 |
397,167 |
Noncontrolling interests |
772 |
595 |
|
|
|
Total equity |
367,435 |
397,762 |
|
|
|
Total liabilities and
equity |
$ 623,327 |
$ 669,742 |
Statement of Operations
Information |
|
For the Three-
Month Periods Ended March 31, |
|
2015 |
2014 |
Net service revenue |
$ 301,572 |
$ 298,739 |
Cost of service, excluding depreciation and
amortization |
170,961 |
177,008 |
General and administrative expenses: |
|
|
Salaries and benefits |
68,555 |
83,171 |
Non-cash compensation |
2,384 |
431 |
Other |
33,070 |
42,698 |
Provision for doubtful accounts |
2,976 |
4,894 |
Depreciation and amortization |
6,537 |
7,902 |
Asset impairment charge |
75,193 |
2,208 |
|
|
|
Operating expenses |
359,676 |
318,312 |
|
|
|
Operating loss |
(58,104) |
(19,573) |
Other income (expense): |
|
|
Interest income |
22 |
6 |
Interest expense |
(2,426) |
(1,261) |
Equity in earnings from equity
investments |
1,951 |
787 |
Miscellaneous, net |
2,134 |
190 |
|
|
|
Total other income
(expense), net |
1,681 |
(278) |
|
|
|
Loss before income taxes |
(56,423) |
(19,851) |
Income tax benefit |
21,591 |
7,618 |
|
|
|
Loss from continuing operations |
(34,832) |
(12,233) |
Discontinued operations, net of tax |
— |
(277) |
|
|
|
Net loss |
(34,832) |
(12,510) |
Net (income) loss attributable to
noncontrolling interests |
(177) |
93 |
|
|
|
Net loss attributable to Amedisys, Inc. |
$ (35,009) |
$ (12,417) |
|
|
|
Basic and diluted earnings per common
share: |
|
|
Loss from continuing operations
attributable to Amedisys, Inc. common stockholders |
$ (1.07) |
$ (0.38) |
|
|
|
Discontinued operations, net of tax |
— |
(0.01) |
|
|
|
Net loss attributable to Amedisys, Inc.
common stockholders |
$ (1.07) |
$ (0.39) |
|
|
|
Weighted average shares outstanding |
32,739 |
31,864 |
|
|
|
Amounts attributable to Amedisys, Inc. common
stockholders: |
|
|
Loss from continuing operations |
$ (35,009) |
$ (12,140) |
Discontinued operations, net of tax |
— |
(277) |
|
|
|
Net loss |
$ (35,009) |
$ (12,417) |
Cash Flow and Days
Revenue Outstanding, Net Information |
|
For the Three-
Month Periods Ended March 31, |
|
2015 |
2014 |
Net cash provided by (used in) operating
activities |
$ 14,483 |
$ (6,342) |
Net cash used in investing activities |
(2,068) |
(4,920) |
Net cash used in financing activities |
(17,315) |
(3,201) |
|
|
|
Net decrease in cash and cash
equivalents |
(4,900) |
(14,463) |
Cash and cash equivalents at beginning of
period |
8,032 |
17,303 |
|
|
|
Cash and cash equivalents at end of
period |
$ 3,132 |
$ 2,840 |
|
|
|
Days revenue outstanding, net (1) |
32.1 |
33.6 |
|
|
|
(1) Our calculation of days
revenue outstanding, net at March 31, 2015 and 2014 is derived
by dividing our ending patient accounts receivable (i.e., net of
estimated revenue adjustments and allowance for doubtful accounts)
by our average daily net patient revenue for the three-month
periods ended March 31, 2015 and 2014, respectively. |
Supplemental Information - Home
Health |
|
|
|
For the Three-
Month Periods Ended March 31, |
|
2015 |
2014 |
Financial Information (in
millions): |
|
|
Medicare |
$ 187.3 |
$ 188.7 |
Non-Medicare |
54.1 |
48.0 |
|
|
|
Net service revenue |
241.4 |
236.7 |
Cost of service |
138.7 |
144.0 |
|
|
|
Gross margin |
102.7 |
92.7 |
Other operating expenses |
66.9 |
82.6 |
|
|
|
Operating income before impairment (1) |
$ 35.8 |
$ 10.1 |
|
|
|
Key Statistical Data: |
|
|
Medicare: |
|
|
Same Store Volume (2): |
|
|
Revenue |
6% |
(7%) |
Admissions |
4% |
(2%) |
Recertifications |
(1%) |
(6%) |
Total (3): |
|
|
Admissions |
45,102 |
46,527 |
Recertifications |
24,359 |
25,778 |
Completed episodes |
64,989 |
67,472 |
Visits |
1,168,250 |
1,204,539 |
Average revenue per completed episode
(4) |
$ 2,854 |
$ 2,778 |
Average revenue per completed episode
including sequestration (5) |
$ 2,797 |
$ 2,722 |
Visits per completed episode (6) |
17.3 |
16.9 |
|
|
|
Non-Medicare: |
|
|
Same Store Volume (2): |
|
|
Revenue |
20% |
1% |
Admissions |
17% |
2% |
Recertifications |
15% |
(5%) |
Total (3): |
|
|
Admissions |
23,118 |
21,193 |
Recertifications |
7,988 |
7,451 |
Visits |
437,465 |
390,140 |
|
|
|
Total (3): |
|
|
Cost per Visit |
$ 86.33 |
$ 90.28 |
Visits |
1,605,715 |
1,594,679 |
|
|
|
(1) Operating income of $8.9
million on a GAAP basis for the three-month period ended
March 31, 2014. |
(2) Same store Medicare and
Non-Medicare revenue, admissions or recertifications growth is the
percent increase (decrease) in our Medicare and Non-Medicare
revenue, admissions or recertifications for the period as a percent
of the Medicare and Non-Medicare revenue, admissions or
recertifications of the prior period. |
(3) Based on continuing
operations for all periods presented. |
(4) Average Medicare revenue
per completed episode is the average Medicare revenue earned for
each Medicare completed episode of care which excludes the impact
of sequestration. |
(5) Average Medicare revenue per
completed episode including sequestration is the average Medicare
revenue earned for each Medicare completed episode of care which
includes the impact of sequestration. |
(6) Medicare visits per completed
episode are the home health Medicare visits on completed episodes
divided by the home health Medicare episodes completed during the
period. |
Supplemental Information
- Hospice |
|
|
|
For the Three-Month Periods Ended March 31, |
|
2015 |
2014 |
Financial Information (in
millions): |
|
|
Medicare revenue |
$ 56.5 |
$ 58.4 |
Non-Medicare revenue |
3.7 |
3.6 |
|
|
|
Net service revenue |
60.2 |
62.0 |
Cost of service |
32.3 |
33.0 |
|
|
|
Gross margin |
27.9 |
29.0 |
Other operating expenses |
15.2 |
17.6 |
|
|
|
Operating income before impairment (1) |
$ 12.7 |
$ 11.4 |
|
|
|
Key Statistical Data: |
|
|
Same Store (2): |
|
|
Medicare revenue |
2% |
(6%) |
Non-Medicare revenue |
13% |
(3%) |
Hospice Admits |
7% |
(5%) |
Average daily census |
1% |
(6%) |
Total (3): |
|
|
Hospice admits |
4,564 |
4,595 |
Average daily census |
4,535 |
4,721 |
Revenue per day |
$ 147.48 |
$ 145.95 |
Cost of service per day |
$ 79.12 |
$ 77.47 |
Average length of stay |
91 |
99 |
|
|
|
(1) Operating income of
$10.4 million on a GAAP basis for the three-month period ended
March 31, 2014. |
(2) Same store Medicare and
Non-Medicare revenue, Hospice admits or average daily census growth
is the percent increase in our Medicare and Non-Medicare revenue,
Hospice admits or average daily census for the period as a percent
of the Medicare and Non-Medicare revenue, Hospice admits or average
daily census of the prior period. |
(3) Based on continuing
operations for all periods presented. |
Supplemental Information -
Corporate |
|
|
|
|
|
|
For the Three-Month Periods Ended March 31, |
|
2015 |
2014 |
Financial Information (in
millions): |
|
|
Other operating expenses |
$ 26.8 |
$ 34.0 |
Depreciation and amortization |
4.6 |
4.9 |
|
|
|
Total before impairment (1) |
$ 31.4 |
$ 38.9 |
|
|
|
(1) Total of $106.6 million
on a GAAP basis for the three-month period ended March 31,
2015. |
|
|
|
|
|
|
AMEDISYS, INC. AND
SUBSIDIARIES |
RECONCILIATION OF
NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL
STATEMENTS |
(Amounts in
thousands) |
(Unaudited) |
|
Earnings From Continuing
Operations Before Interest, Taxes, Depreciation and Amortization
("EBITDA") and Adjusted EBITDA |
|
|
|
|
For the Three-
Month Periods Ended March 31, |
|
|
2015 |
2014 |
|
Net loss attributable to Amedisys, Inc. |
$ (35,009) |
$ (12,417) |
Less: |
|
|
Discontinued operations, net of tax |
— |
(277) |
|
|
|
Net loss from continuing operations
attributable to Amedisys, Inc. |
(35,009) |
(12,140) |
Add: |
|
|
Income tax benefit |
(21,591) |
(7,618) |
Interest expense, net |
2,404 |
1,255 |
Depreciation and amortization |
6,537 |
7,902 |
|
|
|
EBITDA (1) |
(47,659) |
(10,601) |
Add: |
|
|
Certain items (2) |
74,040 |
16,100 |
|
|
|
Adjusted EBITDA (3) |
$ 26,381 |
$ 5,499 |
|
|
|
Adjusted Net Income
(Loss) From Continuing Operations Attributable to Amedisys, Inc.
Reconciliation: |
|
|
|
|
For the Three-
Month Periods Ended March 31, |
|
|
2015 |
2014 |
|
Net loss attributable to Amedisys, Inc. |
$ (35,009) |
$ (12,417) |
Less: |
|
|
Discontinued operations, net of tax |
— |
(277) |
|
|
|
Net loss from continuing operations
attributable to Amedisys, Inc. |
(35,009) |
(12,140) |
Add: |
|
|
Certain items (2) |
44,794 |
9,918 |
|
|
|
Adjusted net income (loss) from continuing
operations attributable to Amedisys, Inc. (4) |
$ 9,785 |
$ (2,222) |
|
|
|
Adjusted Net Income
(Loss) From Continuing Operations Attributable to Amedisys, Inc.
per Diluted Share: |
|
|
|
|
For the
Three-Month Periods Ended March 31, |
|
|
2015 |
2014 |
|
Net loss attributable to Amedisys, Inc.
common stockholders per diluted share |
$ (1.07) |
$ (0.39) |
Less: |
|
|
Discontinued operations, net of tax |
— |
(0.01) |
|
|
|
Net loss from continuing operations
attributable to Amedisys, Inc. common stockholders per diluted
share |
(1.07) |
(0.38) |
Add: |
|
|
Certain items (2) |
1.37 |
0.31 |
|
|
|
Adjusted net income (loss) from continuing
operations attributable to Amedisys, Inc. common stockholders per
diluted share (5) |
$ 0.30 |
$ (0.07) |
|
|
|
(1) EBITDA is defined as net loss
from continuing operations attributable to Amedisys, Inc. before
provision for income taxes, net interest expense, and depreciation
and amortization. EBITDA should not be considered as an alternative
to, or more meaningful than, income before income taxes, cash flow
from operating activities, or other traditional indicators of
operating performance. This calculation of EBITDA may not be
comparable to a similarly titled measure reported by other
companies, since not all companies calculate this non-GAAP
financial measure in the same manner. |
(2) The following details the
certain other items for the three-month periods ended March 31,
2015 and 2014: |
|
|
|
|
For the
Three-Month Period Ended March 31, 2015 |
For the
Three-Month Period Ended March 31, 2014 |
|
(Income) |
|
|
(Income) |
|
|
|
Expense |
Net |
Diluted EPS |
Expense |
Net |
Diluted EPS |
Partial claim recovery |
$ (818) |
$ (495) |
$ (0.02) |
$ — |
$ — |
$ — |
Life insurance proceeds |
(1,044) |
(632) |
(0.02) |
— |
— |
— |
Inventory and Data Security Reporting |
2,121 |
1,283 |
0.04 |
— |
— |
— |
Unrealized gain on investment |
(1,412) |
(854) |
(0.02) |
— |
— |
— |
Asset impairment charge |
75,193 |
45,492 |
1.39 |
2,208 |
1,360 |
0.04 |
Exit and restructuring activity costs |
— |
— |
— |
9,954 |
6,132 |
0.19 |
Relator fees |
— |
— |
— |
3,938 |
2,426 |
0.08 |
|
|
|
|
|
|
|
Total |
$ 74,040 |
$ 44,794 |
$ 1.37 |
$ 16,100 |
$ 9,918 |
$ 0.31 |
|
|
|
|
|
|
|
(3) Adjusted EBITDA is defined as
net loss from continuing operations attributable to Amedisys, Inc.
before provision for income taxes, net interest expense,
depreciation and amortization excluding certain other items as
described in footnote 2. Adjusted EBITDA should not be considered
as an alternative to, or more meaningful than, income before income
taxes, cash flow from operating activities, or other traditional
indicators of operating performance. This calculation of adjusted
EBITDA may not be comparable to a similarly titled measure reported
by other companies, since not all companies calculate this non-GAAP
financial measure in the same manner. |
(4) Adjusted net income (loss)
from continuing operations attributable to Amedisys, Inc. is
defined as net loss from continuing operations attributable to
Amedisys, Inc. excluding certain other items as described in
footnote 2. Adjusted net income (loss) from continuing operations
attributable to Amedisys, Inc. should not be considered as an
alternative to, or more meaningful than, income before income
taxes, cash flow from operating activities, or other traditional
indicators of operating performance. This calculation of adjusted
net income (loss) from continuing operations attributable to
Amedisys, Inc. may not be comparable to a similarly titled measure
reported by other companies, since not all companies calculate this
non-GAAP measure in the same manner. |
(5) Adjusted net income (loss)
from continuing operations attributable to Amedisys, Inc. common
stockholders per diluted share is defined as diluted loss from
continuing operations per share excluding the earnings per share
effect of certain other items as described in footnote 2. Adjusted
net income (loss) from continuing operations 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, cash flow from operating activities, or other
traditional indicators or operating performance. This calculation
of adjusted net income (loss) from continuing operations
attributable to Amedisys, Inc. common stockholders per diluted
share may not be comparable to a similarly titled measure reported
by other companies, since not all companies calculate this non-GAAP
financial measure in the same manner. |
CONTACT: Investor Contact:
Amedisys, Inc.
David Castille
Managing Director, Treasury/Finance
(225) 299-3391
david.castille@amedisys.com
Media Contact:
Amedisys, Inc.
Kendra Kimmons
Managing Director, Marketing & Communications
(225) 299-3720
kendra.kimmons@amedisys.com
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