Amedisys (NASDAQ:AMED)
Historical Stock Chart
2 Years : From May 2011 to May 2013
Amedisys, Inc. (NASDAQ: AMED), a leading home health and hospice
company, today reported its financial results for the fourth quarter and
year ended December 31, 2011 and issued 2012 guidance.
Three-Month Periods Ended December 31, 2011 and
2010
• After adding back $11.3 million and $7.9 million ($7.1 million and
$4.8 million, net of income tax) or $0.24 and $0.17 per diluted share in
certain items* for 2011 and 2010, respectively, the following are our
adjusted results**:
• Net service revenue of $370.7 million compared to $388.7 million in
2010, a decrease of $18.0 million or 4.6%
• Net income from continuing operations attributable to Amedisys, Inc.
of $14.4 million compared to $29.4 million in 2010, a decrease of 51.2%
(net income from continuing operations attributable to Amedisys Inc. of
$7.3 million in 2011 compared to $24.6 million in 2010, on a GAAP basis).
• Net income from continuing operations attributable to Amedisys, Inc.
per diluted share of $0.49 compared to $1.03 per diluted share in 2010,
a decrease of 52.4% (net income from continuing operations attributable
to Amedisys, Inc. per diluted share of $0.25 in 2011 compared to $0.86
in 2010, on a GAAP basis).
• Adjusted earnings before interest, taxes, depreciation and
amortization attributable to continuing operations (“Adjusted EBITDA”)
of $35.6 million compared to $58.1 million in 2010, a decrease of 38.7%
(unadjusted EBITDA of $25.0 million in 2011 and $51.5 million in 2010).
Twelve-Month Periods Ended December 31, 2011 and
2010
• After adding back $588.7 million and $13.8 million ($441.7 million and
$8.4 million, net of income tax) or $15.36 and $0.29 per diluted share
in certain items*, the following are our adjusted results**:
• Net service revenue of $1.5 billion compared to $1.6 billion in 2010,
a decrease of $131.0 million or 8.2% (a decrease of $133.5 million on a
GAAP basis).
• Net income from continuing operations attributable to Amedisys, Inc.
of $66.2 million compared to $131.3 million in 2010, a decrease of 49.6%
(net loss from continuing operations attributable to Amedisys Inc. of
$375.5 million in 2011 and net income from continuing operations
attributable to Amedisys, Inc. of $122.9 million in 2010, on a GAAP
basis).
• Net income from continuing operations attributable to Amedisys, Inc.
per diluted share of $2.27 compared to $4.61 per diluted share in 2010,
a decrease of 50.8% (net loss from continuing operations attributable to
Amedisys, Inc. per diluted share of $13.09 in 2011 and net income from
continuing operations attributable to Amedisys, Inc. per diluted share
of $4.32 in 2010, on a GAAP basis).
• Adjusted EBITDA of $156.3 million compared to $256.0 million in 2010,
a decrease of 39.0% (unadjusted EBITDA of negative $431.7 million in
2011 and $244.1 million in 2010).
William F. Borne, Amedisys Chief Executive Officer commented on the
results: “Home health reimbursement cuts and new regulatory requirements
led to a challenging year for the sector, resulting in declining revenue
and margins for the company on a year-over-year basis. However, our
adjusted fourth quarter results exceeded our expectations, with volume
and cost better than expected.
As we move into 2012, we are focused on the business fundamentals of
clinical excellence, operational efficiency and differentiated growth to
position the company for the industry’s favorable long term trends.”
* See footnote 2 on page 10 for explanation of these certain items.
** See page 9 for the reconciliations of non-GAAP financial measures.
2012 Guidance
• Net service revenue is anticipated to be in the range of $1.475
billion to $1.525 billion.
• Diluted earnings per share is expected to be in the range of $0.95 to
$1.10 based on an estimated 30.2 million shares outstanding.
This guidance excludes the effects of any future acquisitions, if any
are made; effects of any share repurchases; any non-recurring costs or
charges that may be incurred during the year or the impact of any future
Medicare rate changes.
We urge caution in considering the current trends and 2012 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, 2011, 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.
Earnings Call and Webcast Information
To participate in the conference call, please dial (877) 856-1960 (Toll
free) or (719) 325-4893 (Toll) a few minutes before 10:00 a.m. ET on
Tuesday, February 28, 2012. A replay of the conference call will be
available through March 6, 2012. The replay dial in number is
(888) 203-1112 (Toll free) or (719) 457-0820 (Toll). The replay pin
number is 1164258.
The call will also be available through our website and for seven days
thereafter at the following web address: http://www.amedisys.com/investors.
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, 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 (loss) income
attributable to Amedisys, Inc. before provision for income taxes, net
interest expense and depreciation and amortization, adjusted EBITDA,
defined as EBITDA plus certain items, adjusted net service revenue,
defined as net service revenue plus certain items, adjusted net income
attributable to Amedisys, Inc., defined as net (loss) income
attributable to Amedisys, Inc. plus certain items and adjusted diluted
earnings per share, defined as diluted (loss) earnings per share plus
the earnings per share effect of certain 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
As of December 31,
2011
2010
ASSETS
Current assets:
Cash and cash equivalents
$
48,004
$
120,295
Patient accounts receivable, net of allowance for doubtful accounts
of $17,438 and $20,977
148,061
141,549
Prepaid expenses
11,321
9,947
Other current assets
24,630
22,259
Total current assets
232,016
294,050
Property and equipment, net of accumulated deprecation of $94,266,
and $78,074
148,536
138,554
Goodwill
334,695
791,412
Intangible assets, net of accumulated amortization of $20,611 and
$17,135
50,067
53,393
Deferred tax asset
68,649
—
Other assets, net
24,322
22,454
Total assets
$
858,285
$
1,299,863
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable
$
25,475
$
20,663
Payroll and employee benefits
82,130
82,961
Accrued expenses
68,493
61,254
Current portion of long-term obligations
33,888
37,178
Current portion of deferred income taxes
11,748
14,285
Total current liabilities
221,734
216,341
Long-term obligations, less current portion
111,551
144,688
Deferred income taxes
—
52,286
Other long-term obligations
4,852
6,833
Total liabilities
338,137
420,148
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;
31,017,363 and 29,867,701 share issued; and 30,328,549 and
29,232,807 share outstanding
30
29
Additional paid-in capital
432,390
407,156
Treasury stock at cost, 688,814 and 634,894 shares of common stock
(15,770
)
(14,022
)
Accumulated other comprehensive income
13
25
Retained earnings
102,205
484,669
Total Amedisys, Inc. stockholders’ equity
518,868
877,857
Noncontrolling interests
1,280
1,858
Total equity
520,148
879,715
Total liabilities and equity
$
858,285
$
1,299,863
Statement of Operations Information
For the three-month periods ended December 31,
For the Year Ended December 31,
2011
2010
2011
2010
Net service revenue
$
370,746
$
388,718
$
1,470,358
$
1,603,849
Cost of service, excluding depreciation and amortization
202,191
195,972
782,348
796,389
General and administrative expenses:
Salaries and benefits
85,539
87,000
333,190
341,720
Non-cash compensation
28
2,317
8,292
10,634
Other
48,710
46,668
185,297
192,245
Provision for doubtful accounts
3,785
5,027
13,531
18,750
Depreciation and amortization
10,181
9,101
38,611
33,523
Goodwill and other intangibles impairment charge
5,841
—
579,955
—
Operating expenses
356,275
346,085
1,941,224
1,393,261
Operating (loss) income
14,471
42,633
(470,866
)
210,588
Other (expense) income
Interest income
6
61
231
435
Interest expense
(2,129
)
(2,163
)
(8,822
)
(9,201
)
Equity in earnings from equity investments
380
706
1,494
3,016
Miscellaneous, net
4
(724
)
(840
)
(2,297
)
Total other expense, net
(1,739
)
(2,120
)
(7,937
)
(8,047
)
(Loss) income before income taxes
12,732
40,513
(478,803
)
202,541
Income tax benefit (expense)
(5,455
)
(15,750
)
103,426
(78,923
)
(Loss) income from continuing operations
7,277
24,763
(375,377
)
123,618
Discontinued operations, net of tax
(2,959
)
(2,494
)
(6,965
)
(10,345
)
Net (loss) income
4,318
22,269
(382,342
)
113,273
Net (income) attributable to noncontrolling interests
(4
)
(171
)
(122
)
(693
)
Net (loss) income attributable to Amedisys, Inc.
$
4,314
$
22,098
$
(382,464
)
$
112,580
Basic earnings per common share:
(Loss) income from continuing operations attributable to Amedisys,
Inc. common stockholders
$
0.25
$
0.88
$
(13.09
)
$
4.39
Discontinued operations, net of tax
(0.10
)
(0.09
)
(0.24
)
(0.37
)
Net (loss) income attributable to Amedisys, Inc. common stockholders
$
0.15
$
0.79
$
(13.33
)
$
4.02
Weighted average shares outstanding
29,011
28,105
28,693
28,032
Diluted earnings per common share:
(Loss) income from continuing operations attributable to Amedisys,
Inc. common stockholders
$
0.25
$
0.86
$
(13.09
)
$
4.32
Discontinued operations, net of tax
(0.10
)
(0.09
)
(0.24
)
(0.37
)
Net (loss) income attributable to Amedisys, Inc. common
stockholders
$
0.15
$
0.77
$
(13.33
)
$
3.95
Weighted average shares outstanding
29,415
28,528
28,693
28,484
Amounts attributable to Amedisys, Inc. common stockholders:
(Loss) income from continuing operations
$
7,273
$
24,592
$
(375,499
)
$
122,925
Discontinued operations, net of tax
(2,959
)
(2,494
)
(6,965
)
(10,345
)
Net (loss) income
$
4,314
$
22,098
$
(382,464
)
$
112,580
Cash Flow Information
For the three-month periods ended December 31,
For the Year Ended December 31,
2011
2010
2011
2010
Net cash provided by operating activities
$
37,370
$
33,665
$
141,663
$
206,273
Net cash used in investing activities
(12,047
)
(31,956
)
(180,710
)
(73,616
)
Net cash used in financing activities
(6,781
)
(9,451
)
(33,244
)
(46,847
)
Net increase (decrease) in cash and cash equivalents
18,542
(7,742
)
(72,291
)
85,810
Cash and cash equivalents at beginning of period
29,462
128,037
120,295
34,485
Cash and cash equivalents at end of period
$
48,004
$
120,295
$
48,004
$
120,295
Supplemental Information - Home Health
For the Three-Month Periods Ended December 31,
2011
2010
Same Store
Start-ups/Acquisitions
Total
Same Store
Other (1)
Total
Financial Information (in millions):
Episodic-based revenue
$
280.7
$
3.3
$
284.0
$
327.6
$
5.7
$
333.3
Non-episodic revenue
18.1
0.4
18.5
17.4
0.5
17.9
Net service revenue
298.8
3.7
302.5
345.0
6.2
351.2
Same store episodic-based revenue growth (2)
(14
%)
Cost of service
163.6
2.2
165.8
170.5
5.7
176.2
Gross margin
135.2
1.5
136.7
174.5
0.5
175.0
Other operating expenses excluding impairment charge (5)
79.5
1.4
80.9
81.2
9.3
90.5
Operating income before impairment charge (5)
$
55.7
$
0.1
$
55.8
$
93.3
$
(8.8
)
$
84.5
Key Statistical Data:
Admissions:
Episodic-based
56,304
655
56,959
59,573
1,203
60,776
Non-episodic
10,924
237
11,161
9,775
241
10,016
Total admissions
67,228
892
68,120
69,348
1,444
70,792
Same store episodic-based admission growth (2)
(5
%)
Recertifications
Episodic-based
42,258
399
42,657
44,296
797
45,093
Non-episodic
4,491
47
4,538
4,353
45
4,398
Total recertifications
46,749
446
47,195
48,649
842
49,491
Same store episodic-based recertification growth (2)
(5
%)
Completed Episodes
Episodic-based
95,916
998
96,914
100,571
3,046
103,617
Visits:
Episodic-based
1,805,216
20,269
1,825,485
1,929,016
32,676
1,961,692
Non-episodic
198,325
3,689
202,014
188,422
3,384
191,806
Total visits
2,003,541
23,958
2,027,499
2,117,438
36,060
2,153,498
Cost per Visit
$
81.68
$
93.33
$
81.81
$
80.52
$
157.38
$
81.81
Average episodic-based revenue per completed episode (3)
$
2,980
$
3,288
$
2,984
$
3,297
$
3,210
$
3,294
Episodic-based visits per completed episode (4)
18.9
19.7
18.9
19.3
18.3
19.2
For the Years Ended December 31,
2011
2010
Same Store
Start-ups/Acquisitions
Total
Same Store
Other (1)
Total
Financial Information (in millions):
Episodic-based revenue
$
1,161.2
$
17.3
$
1,178.5
$
1,354.0
$
37.5
$
1,391.5
Non-episodic revenue
72.8
1.3
74.1
70.8
2.9
73.7
Net service revenue
1,234.0
18.6
1,252.6
1,424.8
40.4
1,465.2
Same store episodic-based revenue growth (2)
(14
%)
Cost of service
654.9
10.8
665.7
692.3
30.0
722.3
Gross margin
579.1
7.8
586.9
732.5
10.4
742.9
Other operating expenses excluding impairment charge (5)
308.6
8.3
316.9
326.9
41.0
367.9
Operating income before impairment charge (5)
$
270.5
$
(0.5
)
$
270.0
$
405.6
$
(30.6
)
$
375.0
Key Statistical Data:
Admissions:
Episodic-based
230,183
3,538
233,721
240,115
7,674
247,789
Non-episodic
42,354
761
43,115
38,276
1,610
39,886
Total admissions
272,537
4,299
276,836
278,391
9,284
287,675
Same store episodic-based admission growth (2)
(4
%)
Recertifications
Episodic-based
171,690
1,645
173,335
181,481
4,563
186,044
Non-episodic
17,282
158
17,440
18,117
333
18,450
Total recertifications
188,972
1,803
190,775
199,598
4,896
204,494
Same store episodic-based recertification growth (2)
(5
%)
Completed Episodes
Episodic-based
386,959
4,815
391,774
402,910
13,269
416,179
Visits:
Episodic-based
7,436,394
94,225
7,530,619
7,877,580
211,168
8,088,748
Non-episodic
791,823
13,051
804,874
780,284
30,074
810,358
Total visits
8,228,217
107,276
8,335,493
8,657,864
241,242
8,899,106
Cost per Visit
$
79.59
$
100.98
$
79.87
$
79.97
$
124.20
$
81.17
Average episodic-based revenue per completed episode (3)
$
3,003
$
3,126
$
3,005
$
3,315
$
3,216
$
3,312
Episodic-based visits per completed episode (4)
18.8
18.0
18.8
19.2
17.7
19.1
(1) Care centers for the prior period which are not considered same
store care centers (i.e., care centers consolidated in current or prior
period or unopened startups).(2) Same store episodic-based
revenue, admissions or recertifications growth is the percent increase
(decrease) in our same store episodic-based revenue, admissions or
recertifications for the period as a percent of the same store
episodic-based revenue, admissions or recertifications of the prior
period.(3) Average episodic-based revenue per completed episode is
the average episodic-based revenue earned for each episodic-based
completed episode of care.(4) Episodic-based visits per completed
episode are the home health episodic-based visits on completed episodes
divided by the home health episodic-based episodes completed during the
period.(5) Other operating expenses and operating income totaled
$86.7 million and $50.0 million, respectively, including the $5.8
million impairment charge of goodwill for the quarter ended December 31,
2011. Other operating expenses and operating loss totaled $896.8 million
and $309.9 million, respectively, including the $579.9 million
impairment charge of goodwill and other intangibles for the year ended
December 31, 2011.
Supplemental Information - Hospice
For the Three-Month Periods Ended December 31,
2011
2010
Same Store
Start-ups/Acquisitions
Total
Same Store
Other (1)
Total
Financial Information (in millions):
Medicare revenue
$
41.1
$
23.2
$
64.3
$
35.1
$
0.4
$
35.5
Non-Medicare
2.6
1.3
3.9
2.0
—
2.0
Net service revenue
43.7
24.5
68.2
37.1
0.4
37.5
Same store Medicare revenue growth (2)
17
%
Cost of service
22.0
14.3
36.3
19.1
0.7
19.8
Gross margin
21.7
10.2
31.9
18.0
(0.3
)
17.7
Other operating expenses
8.5
5.6
14.1
6.8
0.8
7.6
Operating income
$
13.2
$
4.6
$
17.8
$
11.2
$
(1.1
)
$
10.1
Key Statistical Data:
Hospice admits
2,996
1,439
4,435
2,994
43
3,037
Hospice days
317,922
142,968
460,890
276,145
3,109
279,254
Average daily census
3,456
1,554
5,010
3,001
34
3,035
Revenue per day
$
137.33
$
171.43
$
147.91
$
134.43
$
140.57
$
134.50
Cost of service per day
$
68.51
$
99.82
$
78.20
$
69.12
$
227.94
$
70.89
Average length of stay
95
89
93
87
112
88
For the Years Ended December 31,
2011
2010
Same Store
Start-ups/Acquisitions
Total
Same Store
Other (1)
Total
Financial Information (in millions):
Medicare revenue
$
151.6
$
52.9
$
204.5
$
127.6
$
3.4
$
131.0
Non-Medicare
10.0
3.2
13.2
7.4
0.2
7.6
Net service revenue
161.6
56.1
217.7
135.0
3.6
138.6
Same store Medicare revenue growth (2)
19
%
Cost of service
83.5
33.1
116.6
70.2
3.9
74.1
Gross margin
78.1
23.0
101.1
64.8
(0.3
)
64.5
Other operating expenses
30.9
13.9
44.8
28.3
4.0
32.3
Operating income
$
47.2
$
9.1
$
56.3
$
36.5
$
(4.3
)
$
32.2
Key Statistical Data:
Hospice admits
12,203
3,686
15,889
10,903
372
11,275
Hospice days
1,200,201
331,764
1,531,965
1,007,364
26,196
1,033,560
Average daily census
3,288
909
4,197
2,760
72
2,832
Revenue per day
$
134.66
$
169.20
$
142.14
$
133.99
$
137.61
$
134.09
Cost of service per day
$
69.36
$
99.35
$
75.85
$
69.69
$
147.04
$
71.65
Average length of stay
91
78
88
88
80
88
(1) Care centers for the prior period which are not considered same
store care centers (i.e., care centers consolidated in current or prior
period or unopened startups).(2) Same store Medicare revenue
growth is the percent increase in our same store Medicare revenue for
the period as a percent of the same store Medicare revenue of the prior
period.
AMEDISYS, INC. AND SUBSIDIARIES
SELECT CONSOLIDATED KEY STATISTICAL DATA AND
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP FINANCIAL
STATEMENTS
(Amounts in thousands, except per share data)
(Unaudited)
For the three-month periods ended December 31,
For the Year Ended December 31,
2011
2010
2011
2010
Key Statistical Data:
General
Number of home health care centers
440
486
440
486
Number of hospice care centers
87
67
87
67
Number of care centers acquired (1)
1
1
23
4
Number of care centers opened as start-up locations (1)
2
6
12
48
Days revenue outstanding, net (2)
35.3
32.8
35.3
32.8
(1) Includes both home health and hospice care centers.(2) Our
calculation of days revenue outstanding, net at December 31, 2011 and
2010 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-period ended December 31, 2011 and 2010, respectively.
Earnings from continuing operations before interest, taxes,
depreciation and amortization (“EBITDA”) and Adjusted EBITDA
For the three-month periods ended December 31,
For the Year Ended December 31,
2011
2010
2011
2010
Net (loss) income from continuing operations attributable to
Amedisys, Inc.
$
7,273
$
24,592
$
(375,499
)
$
122,925
Add:
Provision for income taxes
5,455
15,750
(103,426
)
78,923
Interest expense, net
2,123
2,102
8,591
8,766
Depreciation and amortization
10,181
9,101
38,611
33,523
EBITDA (1)
$
25,032
$
51,545
$
(431,723
)
$
244,137
Add:
Certain items (2)
11,314
7,933
588,734
13,784
Intangible write-off (2)
(737
)
(1,343
)
(737
)
(1,916
)
Adjusted EBITDA (3)
$
35,609
$
58,135
$
156,274
$
256,005
Adjusted Net Service Revenue Reconciliation
For the three-month periods ended December 31,
For the Year Ended December 31,
2011
2010
2011
2010
Net service revenue
$
370,746
$
388,718
$
1,470,358
$
1,603,849
Add:
Certain items (2)
—
—
(4,733
)
(7,263
)
Adjusted net service revenue (4)
$
370,746
$
388,718
$
1,465,625
$
1,596,586
Adjusted Net Income From Continuing Operations Attributable
to Amedisys, Inc. Reconciliation:
For the three-month periods ended December 31,
For the Year Ended December 31,
2011
2010
2011
2010
Net (loss) income from continuing operations attributable to
Amedisys, Inc.
$
7,273
$
24,592
$
(375,499
)
$
122,925
Add:
Certain items (2)
7,097
4,839
441,739
8,408
Adjusted net (loss) income from continuing operations attributable
to Amedisys, Inc. (5)
$
14,370
$
29,431
$
66,240
$
131,333
Adjusted Net Loss (Income) From Continuing Operations
Attributable to Amedisys, Inc. per Diluted Share:
For the three-month periods ended December 31,
For the Year Ended December 31,
2011
2010
2011
2010
Net (loss) income from continuing operations attributable to
Amedisys, Inc. common stockholders per diluted share
$
0.25
$
0.86
$
(13.09
)
$
4.32
Add:
Certain items (2)
0.24
0.17
15.36
0.29
Adjusted net (loss) income from continuing operations attributable
to Amedisys, Inc. common stockholders per diluted share (6)
$
0.49
$
1.03
$
2.27
$
4.61
(1) EBITDA is defined as net (loss) income 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) During the three and twelve-month periods ended December 31, 2011,
we recorded charges for the impairment of goodwill and other intangibles
and incurred certain costs associated with acquisitions and related
integrations costs and legal expenses related to the United States
Senate Committee on Finance inquiry and the SEC and Department of
Justice investigations discussed in Note 10 to the consolidated
financial statements. We also incurred costs associated with our exit
activities for those care centers which were consolidated or for which
the startup process was discontinued during the three and twelve-month
periods ended December 31, 2011, which includes $0.7 million for the
write-off of intangibles. For the twelve-month period ended December 31,
2011, these charges were offset, in part, by the release of a valuation
allowance related to specific deferred tax assets and a Centers for
Medicare and Medicaid Services (“CMS”) bonus payment as the result of
the pay for performance demonstration. The following details these items
(amounts in thousands, except per share data):
For the Three-Month Periods Ended December 31,2011
For the Twelve-Month Periods Ended December 31,2011
(Income)Expense
Net
Diluted EPS
(Income)Expense
Net
Diluted EPS
CMS Bonus
$
—
$
—
$
—
$
(4,733
)
$
(2,864
)
$
(0.10
)
Goodwill and other intangibles impairment charge
5,841
3,897
0.13
579,955
438,464
15.25
Valuation allowance adjustment
—
—
—
—
(1,924
)
(0.07
)
Exit activities related to continuing operations
2,502
1,489
0.05
3,370
2,014
0.07
Certain costs
2,971
1,711
0.06
10,142
6,049
0.21
Total
$
11,314
$
7,097
$
0.24
$
588,734
$
441,739
$
15.36
During the three-month period ended December 31, 2010, we incurred
certain costs associated with the realignment of operations including
severance and legal expenses related to the United States Committee on
Finance inquiry and SEC investigation. We also incurred costs associated
with our exit activities for those care centers which were consolidated
or for which the startup process was discontinued during the three and
twelve-month periods ended December 31, 2010, which includes $1.3
million and $1.9 million respectively, for the write-off of intangibles.
During the twelve-month period ended December 31, 2010, these charges
were offset, in part, when we settled our Georgia indigent care
liability and received a CMS bonus payment as the result of the pay for
performance demonstration. The following details these items (amounts in
thousands, except per share data):
For the Three-Month Periods Ended December 31,2010
For the Twelve-Month Periods Ended December 31,2010
(Income)Expense
Net
Diluted EPS
Income(Expense)
Net
Diluted EPS
Georgia indigent care liability
$
—
$
—
$
—
$
(3,676
)
(2,242
)
(0.08
)
CMS Bonus
—
—
—
(3,587
)
(2,188
)
(0.08
)
Exit activities related to continuing operations
4,727
2,884
0.10
11,438
6,977
0.24
Certain costs
3,206
1,955
0.07
9,609
5,861
0.21
Total
$
7,933
$
4,839
$
0.17
$
13,784
$
8,408
$
0.29
(3) Adjusted EBITDA is defined as net (loss) income attributable to
Amedisys, Inc. from continuing operations before provision for income
taxes, net interest expense, depreciation and amortization plus certain
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 service revenue is defined as net service revenue plus
certain items as described in footnote 2. Adjusted net service revenue
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 service revenue 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 attributable to Amedisys, Inc. from continuing
operations is defined as net (loss) income attributable to Amedisys,
Inc. from continuing operations plus certain items as described in
footnote 2. Adjusted net income attributable to Amedisys, Inc. from
continuing operations 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 attributable to
Amedisys, Inc. from continuing operations 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.
(6) Adjusted net (loss) income from continuing operations attributable
to Amedisys, Inc. common stockholders per diluted share is defined as
diluted (loss) earnings from continuing operations per share plus the
earnings per share effect of certain items as described in footnote 2.
Adjusted net (loss) income 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
(loss) income 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.
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