Amedisys, Inc. (NASDAQ:AMED) today reported its financial results
for the three and six-month periods ended June 30, 2017.
Three Month Periods Ended June 30, 2017 and 2016
- Net service revenue increased $18.1 million to
$378.8 million compared to $360.7 million in 2016.
- Net income attributable to Amedisys, Inc. of $4.5 million
compared to $10.7 million in 2016.
- Net income attributable to Amedisys, Inc. per diluted share of
$0.13 compared to $0.32 in 2016.
Adjusted Quarterly Results*
- Adjusted EBITDA of $36.1 million compared to
$29.8 million in 2016.
- Adjusted net service revenue of $378.8 million compared to
$361.7 million in 2016.
- Adjusted net income attributable to Amedisys, Inc. of
$21.4 million compared to $14.1 million in 2016.
- Adjusted net income attributable to Amedisys, Inc. per diluted
share of $0.62 compared to $0.42 in 2016.
Six Month Periods Ended June 30, 2017 and 2016
- Net service revenue increased $39.7 million to
$749.3 million compared to $709.6 million in 2016.
- Net income attributable to Amedisys, Inc. of $19.6 million
compared to $16.9 million in 2016.
- Net income attributable to Amedisys, Inc. per diluted share of
$0.57 compared to $0.50 in 2016.
Adjusted Year to Date Results*
- Adjusted EBITDA of $68.1 million compared to
$53.8 million in 2016.
- Adjusted net service revenue of $749.3 million compared to
$710.5 million in 2016.
- Adjusted net income attributable to Amedisys, Inc. of
$37.4 million compared to $25.0 million in 2016.
- Adjusted net income attributable to Amedisys, Inc. per diluted
share of $1.09 compared to $0.74 in 2016.
* See pages 12 and 13 for the definition and reconciliations of
non-GAAP financial measures to GAAP measures.
Paul B. Kusserow, President and Chief Executive Officer stated,
“Overall, I am satisfied with our second quarter results. Our
hospice segment continues to exceed expectations and our personal
care segment is progressing well as they continue to integrate
acquisitions and scale up. We have also made early progress
with our strategies to recruit, retain, train and properly
incentivize our home health business development staff. While
home health volume was expectedly soft, we have identified the
issues driving this trend and are executing upon the
solutions. In home health, we anticipate returning to organic
episodic admission growth in the third quarter. Most
importantly, our clinical and outcomes metrics continued to improve
across the board as we pursue our goal of clinical distinction to
bring value to our patients, their families, our referral sources
and payors. Finally, the operational efficiencies we have
targeted are being reflected in increased adjusted EBITDA margins
and strong cash flow, providing us with a flexible balance sheet to
take advantage of strategic, inorganic opportunities. Thanks
to our tremendous team, over 16,000 strong, for their continued
dedication to serving our patients.”
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,
2016, 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.
Earnings Call and Webcast Information
Amedisys will host a conference call on Thursday, July 27,
2017, at 11:00 a.m. ET to discuss its second quarter results. To
participate on the conference call, please call 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
August 27, 2017 by dialing (877) 660-6853 (Toll-Free) or (201)
612-7415 (Toll) and entering conference ID #13666366.
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.
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; (3) adjusted net income
attributable to Amedisys, Inc., defined as net income attributable
to Amedisys, Inc. excluding certain items; and (4) 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.
Additional information
Amedisys, Inc. (the “Company”) 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
approximately 16,000 employees, in 426 care centers in 34 states,
Amedisys is dedicated to delivering the highest quality of care to
the doorsteps of more than 385,000 patients in need every year. For
more information about the Company, please visit:
www.amedisys.com.
We use our 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 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 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.
AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Amounts in thousands, except per share data)
(Unaudited) |
|
|
For the Three Month Period
Ended June 30, |
For the Six Month Period
Ended June 30, |
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Net service
revenue |
$ |
378,821 |
|
$ |
360,746 |
|
$ |
749,279 |
|
$ |
709,563 |
|
Cost of service,
excluding depreciation and amortization |
|
219,765 |
|
|
206,505 |
|
|
435,550 |
|
|
408,342 |
|
General and
administrative expenses: |
|
|
|
|
Salaries
and benefits |
|
74,943 |
|
|
77,343 |
|
|
149,402 |
|
|
154,060 |
|
Non-cash
compensation |
|
4,356 |
|
|
3,736 |
|
|
8,230 |
|
|
7,806 |
|
Other |
|
41,617 |
|
|
45,576 |
|
|
82,034 |
|
|
92,293 |
|
Provision for doubtful
accounts |
|
4,651 |
|
|
4,253 |
|
|
10,992 |
|
|
8,193 |
|
Depreciation and
amortization |
|
4,537 |
|
|
4,975 |
|
|
8,954 |
|
|
9,448 |
|
Securities
Class Action Lawsuit settlement, net |
|
28,712 |
|
|
— |
|
|
28,712 |
|
|
— |
|
Operating expenses |
|
378,581 |
|
|
342,388 |
|
|
723,874 |
|
|
680,142 |
|
Operating income |
|
240 |
|
|
18,358 |
|
|
25,405 |
|
|
29,421 |
|
Other income
(expense): |
|
|
|
|
Interest
income |
|
41 |
|
|
9 |
|
|
60 |
|
|
31 |
|
Interest
expense |
|
(1,197 |
) |
|
(1,303 |
) |
|
(2,265 |
) |
|
(2,415 |
) |
Equity in
earnings from equity method investments |
|
2,355 |
|
|
363 |
|
|
2,249 |
|
|
358 |
|
Miscellaneous, net |
|
1,127 |
|
|
658 |
|
|
2,239 |
|
|
1,393 |
|
Total
other income (expense), net |
|
2,326 |
|
|
(273 |
) |
|
2,283 |
|
|
(633 |
) |
Income before income
taxes |
|
2,566 |
|
|
18,085 |
|
|
27,688 |
|
|
28,788 |
|
Income tax benefit
(expense) |
|
1,963 |
|
|
(7,242 |
) |
|
(7,960 |
) |
|
(11,630 |
) |
Net income |
|
4,529 |
|
|
10,843 |
|
|
19,728 |
|
|
17,158 |
|
Net income attributable
to noncontrolling interests |
|
(68 |
) |
|
(147 |
) |
|
(137 |
) |
|
(249 |
) |
Net income attributable
to Amedisys, Inc. |
$ |
4,461 |
|
$ |
10,696 |
|
$ |
19,591 |
|
$ |
16,909 |
|
Basic earnings per
common share: |
|
|
|
|
|
|
|
|
|
|
|
|
Net
income attributable to Amedisys, Inc. common
stockholders |
$ |
0.13 |
|
$ |
0.32 |
|
$ |
0.58 |
|
$ |
0.51 |
|
Weighted
average shares outstanding |
|
33,637 |
|
|
33,197 |
|
|
33,540 |
|
|
33,059 |
|
Diluted
earnings per common share: |
Net
income attributable to Amedisys, Inc. common
stockholders |
$ |
0.13 |
|
$ |
0.32 |
|
$ |
0.57 |
|
$ |
0.50 |
|
Weighted
average shares outstanding |
|
34,329 |
|
|
33,708 |
|
|
34,203 |
|
|
33,641 |
|
AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
(Amounts in thousands, except share data) |
|
|
June 30, 2017 |
December 31, 2016
|
|
|
(Unaudited) |
|
|
|
ASSETS |
|
|
Current assets: |
|
|
Cash and
cash equivalents |
$ |
59,164 |
|
$ |
30,197 |
|
Patient
accounts receivable, net of allowance for doubtful accounts of
$17,865 and $17,716 |
|
173,388 |
|
|
166,056 |
|
Prepaid
expenses |
|
8,800 |
|
|
7,397 |
|
Other
current assets |
|
31,789 |
|
|
11,260 |
|
Total
current assets |
|
273,141 |
|
|
214,910 |
|
Property and equipment,
net of accumulated depreciation of $144,708 and $138,650 |
|
34,420 |
|
|
36,999 |
|
Goodwill |
|
313,663 |
|
|
288,957 |
|
Intangible assets, net
of accumulated amortization of $29,254 and $27,864 |
|
45,523 |
|
|
46,755 |
|
Deferred income
taxes |
|
100,806 |
|
|
107,940 |
|
Other assets, net |
|
38,320 |
|
|
38,468 |
|
Total
assets |
$ |
805,873 |
|
$ |
734,029 |
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
Current
liabilities: |
|
|
|
|
|
|
Accounts
payable |
$ |
29,119 |
|
$ |
30,358 |
|
Payroll
and employee benefits |
|
81,331 |
|
|
82,480 |
|
Accrued
charge related to Securities Class Action Lawsuit
settlement |
|
43,750 |
|
|
— |
|
Accrued
expenses |
|
62,981 |
|
|
63,290 |
|
Current
portion of long-term obligations |
|
8,137 |
|
|
5,220 |
|
Total
current liabilities |
|
225,318 |
|
|
181,348 |
|
Long-term obligations,
less current portion |
|
83,157 |
|
|
87,809 |
|
Other long-term
obligations |
|
4,337 |
|
|
3,730 |
|
Total
liabilities |
|
312,812 |
|
|
272,887 |
|
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; 35,609,934
and 35,253,577 shares issued; and 33,850,633 and 33,597,215 shares
outstanding |
|
36 |
|
|
35 |
|
Additional paid-in capital |
|
555,029 |
|
|
537,472 |
|
Treasury
stock at cost, 1,759,301 and 1,656,362 shares of common stock |
|
(52,500 |
) |
|
(46,774 |
) |
Accumulated other comprehensive income |
|
15 |
|
|
15 |
|
Retained
deficit |
|
(10,505 |
) |
|
(30,545 |
) |
Total
Amedisys, Inc. stockholders’ equity |
|
492,075 |
|
|
460,203 |
|
Noncontrolling interests |
|
986 |
|
|
939 |
|
Total
equity |
|
493,061 |
|
|
461,142 |
|
Total
liabilities and equity |
$ |
805,873 |
|
$ |
734,029 |
|
|
|
|
|
|
|
|
AMEDISYS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS
REVENUE OUTSTANDING, NET (Amounts in thousands,
except statistical information)
(Unaudited) |
|
|
For the Three Month Period Ended
June 30, |
For the Six Month Period Ended June 30,
|
|
|
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
Cash Flows from
Operating Activities: |
|
|
|
|
|
|
Net income |
$ |
4,529 |
|
$ |
10,843 |
|
$ |
19,728 |
|
$ |
17,158 |
|
Adjustments to
reconcile net income to net cash provided by operating
activities: |
|
|
|
|
Depreciation and amortization |
|
4,537 |
|
|
4,975 |
|
|
8,954 |
|
|
9,448 |
|
Provision
for doubtful accounts |
|
4,651 |
|
|
4,253 |
|
|
10,992 |
|
|
8,193 |
|
Non-cash
compensation |
|
4,356 |
|
|
3,736 |
|
|
8,230 |
|
|
7,806 |
|
401(k)
employer match |
|
2,140 |
|
|
1,703 |
|
|
4,367 |
|
|
3,440 |
|
Loss on
disposal of property and equipment |
|
163 |
|
|
162 |
|
|
147 |
|
|
522 |
|
Deferred
income taxes |
|
(1,863 |
) |
|
7,324 |
|
|
7,582 |
|
|
11,362 |
|
Equity in
earnings from equity method investments |
|
(2,355 |
) |
|
(363 |
) |
|
(2,249 |
) |
|
(358 |
) |
Amortization of deferred debt issuance costs |
|
185 |
|
|
185 |
|
|
370 |
|
|
370 |
|
Return on
equity investment |
|
3,266 |
|
|
— |
|
|
3,416 |
|
|
362 |
|
Changes in operating
assets and liabilities, net of impact of acquisitions: |
|
|
|
|
Patient
accounts receivable |
|
(5,332 |
) |
|
(2,660 |
) |
|
(17,825 |
) |
|
(30,349 |
) |
Other
current assets |
|
(3,489 |
) |
|
(2,294 |
) |
|
(6,892 |
) |
|
5,551 |
|
Other
assets |
|
(158 |
) |
|
(9,168 |
) |
|
(1,148 |
) |
|
(11,943 |
) |
Accounts
payable |
|
1,000 |
|
|
(490 |
) |
|
1,093 |
|
|
8,608 |
|
Securities Class Action Lawsuit settlement accrual,
net |
|
28,712 |
|
|
— |
|
|
28,712 |
|
|
— |
|
Accrued
expenses |
|
(4,129 |
) |
|
(3,612 |
) |
|
(2,743 |
) |
|
(2,811 |
) |
Other
long-term obligations |
|
31 |
|
|
57 |
|
|
607 |
|
|
(464 |
) |
Net cash provided by
operating activities |
|
36,244 |
|
|
14,651 |
|
|
63,341 |
|
|
26,895 |
|
Cash Flows from
Investing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds
from sale of deferred compensation plan assets |
|
— |
|
|
— |
|
|
565 |
|
|
230 |
|
Purchase
of investment |
|
(180 |
) |
|
(432 |
) |
|
(436 |
) |
|
(432 |
) |
Purchases
of property and equipment |
|
(3,064 |
) |
|
(3,213 |
) |
|
(7,449 |
) |
|
(9,915 |
) |
Acquisitions of businesses, net of cash acquired |
|
(20,029 |
) |
|
48 |
|
|
(24,128 |
) |
|
(27,634 |
) |
Net cash used in
investing activities |
|
(23,273 |
) |
|
(3,597 |
) |
|
(31,448 |
) |
|
(37,751 |
) |
Cash Flows from
Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds
from issuance of stock upon exercise of stock options and
warrants |
|
3,550 |
|
|
— |
|
|
4,203 |
|
|
— |
|
Proceeds
from issuance of stock to employee stock purchase plan |
|
575 |
|
|
569 |
|
|
1,187 |
|
|
1,207 |
|
Shares
withheld upon stock vesting |
|
(4,968 |
) |
|
— |
|
|
(5,726 |
) |
|
— |
|
Tax
benefit from stock options exercised and restricted stock
vesting |
|
— |
|
|
6,971 |
|
|
— |
|
|
7,130 |
|
Non-controlling interest distribution |
|
(48 |
) |
|
(200 |
) |
|
(90 |
) |
|
(200 |
) |
Proceeds
from revolving line of credit |
|
— |
|
|
43,500 |
|
|
— |
|
|
84,000 |
|
Repayments of revolving line of credit |
|
— |
|
|
(58,500 |
) |
|
— |
|
|
(84,000 |
) |
Principal
payments of long-term obligations |
|
(1,250 |
) |
|
(1,250 |
) |
|
(2,500 |
) |
|
(2,500 |
) |
Purchase
of company stock |
|
— |
|
|
— |
|
|
— |
|
|
(12,315 |
) |
Net cash used in
financing activities |
|
(2,141 |
) |
|
(8,910 |
) |
|
(2,926 |
) |
|
(6,678 |
) |
Net increase (decrease)
in cash and cash equivalents |
|
10,830 |
|
|
2,144 |
|
|
28,967 |
|
|
(17,534 |
) |
Cash and cash
equivalents at beginning of period |
|
48,334 |
|
|
7,824 |
|
|
30,197 |
|
|
27,502 |
|
Cash and cash
equivalents at end of period |
$ |
59,164 |
|
$ |
9,968 |
|
$ |
59,164 |
|
$ |
9,968 |
|
Supplemental
Disclosures of Cash Flow Information: |
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for
interest |
$ |
466 |
|
$ |
711 |
|
$ |
1,172 |
|
$ |
1,359 |
|
Cash paid for income
taxes, net of refunds received |
$ |
— |
|
$ |
832 |
|
$ |
284 |
|
$ |
825 |
|
Days
revenue outstanding, net (1) |
|
40.2 |
|
|
37.2 |
|
|
40.2 |
|
|
37.2 |
|
|
(1) Our
calculation of days revenue outstanding, net at June 30, 2017
and 2016 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 June 30, 2017 and
2016, respectively. |
AMEDISYS, INC. AND SUBSIDIARIES
SEGMENT INFORMATION (Amounts in millions,
except statistical information)
(Unaudited) |
|
Segment Information - Home Health |
|
|
For the Three Month Period Ended June 30,
|
|
|
|
2017 |
|
|
2016 |
|
Financial
Information (in millions): |
|
|
|
|
|
|
Medicare |
$ |
198.3 |
|
$ |
208.4 |
|
Non-Medicare |
|
75.4 |
|
|
67.1 |
|
Net
service revenue |
|
273.7 |
|
|
275.5 |
|
Cost of
service |
|
164.8 |
|
|
160.3 |
|
Gross margin |
|
108.9 |
|
|
115.2 |
|
Other operating
expenses |
|
73.3 |
|
|
77.4 |
|
Operating
income |
$ |
35.6 |
|
$ |
37.8 |
|
|
|
|
|
|
|
|
|
|
|
Same Store
Growth (1): |
|
|
Medicare
revenue |
|
(5 |
%) |
|
4 |
% |
Non-Medicare
revenue |
|
12 |
% |
|
13 |
% |
Medicare
admissions |
|
(4 |
%) |
|
4 |
% |
Total Episodic
admissions |
|
(1 |
%) |
|
5 |
% |
Total admissions |
|
— |
% |
|
3 |
% |
|
|
|
Key Statistical
Data - Total (2): |
|
|
|
|
|
Medicare: |
|
|
Admissions |
|
47,260 |
|
|
48,982 |
|
Recertifications |
|
26,839 |
|
|
26,020 |
|
Completed episodes |
|
73,872 |
|
|
74,027 |
|
Visits |
|
1,271,747 |
|
|
1,315,417 |
|
Average revenue per
completed episode (3) |
$ |
2,829 |
|
$ |
2,850 |
|
Visits per completed
episode (4) |
|
17.5 |
|
|
17.7 |
|
|
|
|
Non-Medicare: |
|
|
Admissions |
|
26,225 |
|
|
24,237 |
|
Recertifications |
|
11,462 |
|
|
9,640 |
|
Visits |
|
579,328 |
|
|
515,062 |
|
Visiting Clinician Cost
per Visit |
$ |
80.61 |
|
$ |
79.44 |
|
Clinical Manager Cost
per Visit |
$ |
8.44 |
|
$ |
8.12 |
|
Total Cost per
Visit |
$ |
89.05 |
|
$ |
87.56 |
|
Visits |
|
1,851,075 |
|
|
1,830,479 |
|
|
For the Six Month Period Ended June 30,
|
|
|
|
2017 |
|
|
2016 |
|
Financial
Information (in millions): |
|
|
|
|
|
|
Medicare |
$ |
397.0 |
|
$ |
415.2 |
|
Non-Medicare |
|
148.0 |
|
|
133.0 |
|
Net
service revenue |
|
545.0 |
|
|
548.2 |
|
Cost of service |
|
327.8 |
|
|
321.1 |
|
Gross margin |
|
217.2 |
|
|
227.1 |
|
Other operating
expenses |
|
145.9 |
|
|
153.1 |
|
Operating
income |
$ |
71.3 |
|
$ |
74.0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Store
Growth (1): |
|
|
Medicare revenue |
|
(4 |
%) |
|
4 |
% |
Non-Medicare
revenue |
|
12 |
% |
|
17 |
% |
Medicare
admissions |
|
(2 |
%) |
|
4 |
% |
Total Episodic
admissions |
|
1 |
% |
|
5 |
% |
Total
admissions |
|
1 |
% |
|
5 |
% |
|
|
|
Key Statistical
Data - Total (2): |
|
|
|
|
|
Medicare: |
|
|
Admissions |
|
96,888 |
|
|
99,400 |
|
Recertifications |
|
51,882 |
|
|
52,043 |
|
Completed
episodes |
|
145,736 |
|
|
146,059 |
|
Visits |
|
2,534,845 |
|
|
2,626,788 |
|
Average revenue per
completed episode (3) |
$ |
2,750 |
|
$ |
2,831 |
|
Visits per completed
episode (4) |
|
17.2 |
|
|
17.6 |
|
|
|
|
Non-Medicare: |
|
|
Admissions |
|
53,558 |
|
|
49,804 |
|
Recertifications |
|
21,686 |
|
|
19,466 |
|
Visits |
|
1,134,876 |
|
|
1,043,031 |
|
|
|
|
Visiting Clinician Cost
per Visit |
$ |
80.84 |
|
$ |
79.29 |
|
Clinical Manager Cost
per Visit |
$ |
8.49 |
|
$ |
8.22 |
|
Total Cost per
Visit |
$ |
89.33 |
|
$ |
87.51 |
|
Visits |
|
3,669,721 |
|
|
3,669,819 |
|
(1) Same store
information represents the percent increase (decrease) in our
Medicare and Non-Medicare revenue or admissions for the period as a
percent of the Medicare and Non-Medicare revenue or admissions of
the prior period. |
(2) Total includes
acquisitions. |
(3) Average Medicare
revenue per completed episode is the average Medicare revenue
earned for each Medicare completed episode of care. |
(4) 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. |
Segment Information - Hospice |
|
|
|
|
For the Three Month Period Ended June 30,
|
|
|
|
2017 |
|
|
2016 |
|
Financial
Information (in millions): |
|
|
|
|
|
|
Medicare |
$ |
85.8 |
|
$ |
71.3 |
|
Non-Medicare |
|
4.9 |
|
|
4.5 |
|
Net
service revenue |
|
90.7 |
|
|
75.8 |
|
Cost of service |
|
44.7 |
|
|
39.4 |
|
Gross margin |
|
46.0 |
|
|
36.4 |
|
Other operating
expenses |
|
20.4 |
|
|
18.4 |
|
Operating income |
$ |
25.6 |
|
$ |
18.0 |
|
|
|
|
|
|
|
|
Same Store
Growth (1): |
|
|
Medicare revenue |
|
19 |
% |
|
14 |
% |
Non-Medicare
revenue |
|
8 |
% |
|
15 |
% |
Hospice admissions |
|
11 |
% |
|
18 |
% |
Average daily
census |
|
16 |
% |
|
16 |
% |
Key Statistical
Data - Total (2): |
|
|
Hospice admissions |
|
6,248 |
|
|
5,576 |
|
Average daily
census |
|
6,717 |
|
|
5,730 |
|
Revenue per day,
net |
$ |
148.39 |
|
$ |
145.40 |
|
Cost of service per
day |
$ |
73.08 |
|
$ |
75.69 |
|
Average discharge
length of stay |
|
89 |
|
|
94 |
|
|
|
|
For the Six
Month Period Ended June 30,
|
|
|
|
2017 |
|
|
2016 |
|
Financial
Information (in millions): |
|
|
|
|
|
|
Medicare |
$ |
166.5 |
|
$ |
140.0 |
|
Non-Medicare |
|
9.8 |
|
|
8.8 |
|
Net
service revenue |
|
176.3 |
|
|
148.8 |
|
Cost of service |
|
87.1 |
|
|
78.2 |
|
|
|
|
|
|
|
|
Gross margin |
|
89.2 |
|
|
70.6 |
|
Other operating
expenses |
|
41.2 |
|
|
36.3 |
|
|
|
|
|
|
|
|
Operating income |
$ |
48.0 |
|
$ |
34.3 |
|
|
|
|
|
|
|
|
Same Store
Growth (1): |
|
|
|
|
|
|
Medicare revenue |
|
18 |
% |
|
18 |
% |
Non-Medicare
revenue |
|
11 |
% |
|
15 |
% |
Hospice admissions |
|
15 |
% |
|
19 |
% |
Average daily
census |
|
16 |
% |
|
19 |
% |
Key Statistical
Data - Total (2): |
|
|
Hospice admissions |
|
12,753 |
|
|
11,006 |
|
Average daily
census |
|
6,542 |
|
|
5,618 |
|
Revenue per day,
net |
$ |
148.88 |
|
$ |
145.52 |
|
Cost of service per
day |
$ |
73.56 |
|
$ |
76.51 |
|
Average discharge
length of stay |
|
90 |
|
|
95 |
|
(1) Same store
information represents the percent increase (decrease) in our
Medicare and Non-Medicare revenue, Hospice admissions or average
daily census for the period as a percent of the Medicare and
Non-Medicare revenue, Hospice admissions or average daily census of
the prior period. |
(2) Total includes
acquisitions. |
Segment Information - Personal Care |
|
|
|
For the
Three Month Period Ended June 30, |
|
|
2017 |
|
2016 |
Financial
Information (in millions): |
|
|
|
|
Medicare |
$ |
— |
$ |
— |
Non-Medicare |
|
14.4 |
|
9.4 |
Net
service revenue |
|
14.4 |
|
9.4 |
Cost of
service |
|
10.3 |
|
6.8 |
Gross margin |
|
4.1 |
|
2.6 |
Other operating
expenses |
|
3.1 |
|
2.3 |
Operating
income |
$ |
1.0 |
$ |
0.3 |
|
|
|
|
|
Key Statistical
Data: |
|
|
|
|
Billable hours |
|
618,401 |
|
404,374 |
Clients
served |
|
8,470 |
|
5,940 |
|
|
|
|
|
|
|
For the
Six Month Period Ended June 30, |
|
|
2017 |
|
2016 |
Financial
Information (in millions): |
|
|
|
|
Medicare |
$ |
— |
$ |
— |
Non-Medicare |
|
28.0 |
|
12.5 |
Net
service revenue |
|
28.0 |
|
12.5 |
Cost of
service |
|
20.7 |
|
9.0 |
Gross margin |
|
7.3 |
|
3.5 |
Other operating
expenses |
|
6.5 |
|
2.7 |
Operating
income |
$ |
0.8 |
$ |
0.8 |
|
|
|
|
|
Key Statistical
Data: |
|
|
|
|
Billable hours |
|
1,206,618 |
|
542,257 |
Clients
served |
|
10,169 |
|
6,866 |
Segment Information - Corporate |
|
|
|
For the Three Month Period Ended June 30, |
|
|
2017 |
|
2016 |
Financial
Information (in millions): |
|
|
|
Other operating
expenses |
$ |
30.0 |
$ |
34.7 |
Depreciation and
amortization |
|
3.3 |
|
3.1 |
Total operating
expenses before Securities Class Action Lawsuit settlement,
net |
|
33.3 |
|
37.8 |
Securities
Class Action Lawsuit settlement, net |
|
28.7 |
|
— |
Total operating
expenses |
$ |
62.0 |
$ |
37.8 |
|
|
|
|
|
|
|
For the Six Month
Period Ended June 30, |
|
|
2017 |
|
2016 |
Financial
Information (in millions): |
|
|
|
Other operating
expenses |
$ |
59.5 |
$ |
73.7 |
Depreciation and
amortization |
|
6.5 |
|
6.0 |
Total operating
expenses before Securities Class Action Lawsuit settlement,
net |
|
66.0 |
|
79.7 |
Securities
Class Action Lawsuit settlement, net |
|
28.7 |
|
— |
Total operating
expenses |
$ |
94.7 |
$ |
79.7 |
AMEDISYS, INC. AND SUBSIDIARIES
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP
MEASURES (Amounts in thousands)
(Unaudited) |
|
Adjusted Earnings Before Interest, Taxes, Depreciation and
Amortization (“Adjusted EBITDA”): |
|
|
For the Three Month Period
Ended June 30, |
For the Six Month Period
Ended June 30, |
|
|
2017 |
|
|
2016 |
|
2017 |
|
2016 |
Net income attributable
to Amedisys, Inc. |
$ |
4,461 |
|
$ |
10,696 |
$ |
19,591 |
$ |
16,909 |
Add: |
|
|
|
|
Income
tax (benefit) expense |
|
(1,963 |
) |
|
7,242 |
|
7,960 |
|
11,630 |
Interest
expense, net |
|
1,156 |
|
|
1,294 |
|
2,205 |
|
2,384 |
Depreciation and amortization |
|
4,537 |
|
|
4,975 |
|
8,954 |
|
9,448 |
Certain
items (1) |
|
27,958 |
|
|
5,636 |
|
29,424 |
|
13,402 |
|
|
|
|
|
Adjusted EBITDA (2)
(6) |
$ |
36,149 |
|
$ |
29,843 |
$ |
68,134 |
$ |
53,773 |
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Service Revenue Reconciliation: |
|
|
|
|
|
|
|
|
For the Three Month Period
Ended June 30, |
For the Six Month Period
Ended June 30, |
|
|
2017 |
|
|
2016 |
|
2017 |
|
2016 |
Net service
revenue |
$ |
378,821 |
|
$ |
360,746 |
$ |
749,279 |
$ |
709,563 |
Add: |
|
|
|
|
Certain
items (1) |
|
— |
|
|
948 |
|
— |
|
948 |
|
|
|
|
|
Adjusted net service
revenue (3) (6) |
$ |
378,821 |
|
$ |
361,694 |
$ |
749,279 |
$ |
710,511 |
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income Attributable to Amedisys, Inc. Reconciliation: |
|
|
|
|
|
|
|
|
For the Three Month Period
Ended June 30, |
For the Six Month Period
Ended June 30, |
|
|
2017 |
|
|
2016 |
|
2017 |
|
2016 |
Net income attributable
to Amedisys, Inc. |
$ |
4,461 |
|
$ |
10,696 |
$ |
19,591 |
$ |
16,909 |
Add: |
|
|
|
|
Certain
items (1) |
|
16,915 |
|
|
3,410 |
|
17,802 |
|
8,108 |
|
|
|
|
|
Adjusted net income
attributable to Amedisys, Inc. (4) (6) |
$ |
21,376 |
|
$ |
14,106 |
$ |
37,393 |
$ |
25,017 |
|
|
|
|
|
|
|
|
|
|
Adjusted Net
Income Attributable to Amedisys, Inc. per Diluted
Share: |
|
|
|
|
|
|
|
|
For the Three Month Period
Ended June 30, |
For the Six Month Period
Ended June 30, |
|
|
2017 |
|
|
2016 |
|
2017 |
|
2016 |
Net income attributable
to Amedisys, Inc. common stockholders per diluted share |
$ |
0.13 |
|
$ |
0.32 |
$ |
0.57 |
$ |
0.50 |
Add: |
|
|
|
|
Certain
items (1) |
|
0.49 |
|
|
0.10 |
|
0.52 |
|
0.24 |
|
|
|
|
|
Adjusted net income
attributable to Amedisys, Inc. common stockholders per diluted
share (5) (6) |
$ |
0.62 |
|
$ |
0.42 |
$ |
1.09 |
$ |
0.74 |
|
(1) The
following details the certain items for the three and six month
periods ended June 30, 2017 and 2016: |
Certain
Items: |
|
|
|
|
|
|
For the Three Month Period
Ended June 30, 2017 |
|
For the Six Month Period
Ended June 30, 2017 |
|
|
(Income) Expense |
|
(Income) Expense |
|
Certain Items
Impacting Operating Expenses: |
|
|
|
|
|
|
Acquisition
costs |
|
294 |
|
|
976 |
|
Legal fees -
non-routine |
|
1,111 |
|
|
1,234 |
|
Securities
Class Action Lawsuit settlement accrual, net |
|
28,712 |
|
|
28,712 |
|
Data center
relocation |
|
226 |
|
|
940 |
|
Certain Items
Impacting Total Other Income (Expense): |
|
|
|
|
|
|
Legal
settlements |
|
(693 |
) |
|
(1,367 |
) |
Miscellaneous, other
(income) expense, net |
|
(1,692 |
) |
|
(1,071 |
) |
|
|
|
|
|
|
|
Total |
$ |
27,958 |
|
$ |
29,424 |
|
|
|
|
|
|
|
|
Net of tax |
$ |
16,915 |
|
$ |
17,802 |
|
|
|
|
|
|
|
|
Diluted EPS |
$ |
0.49 |
|
$ |
0.52 |
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Month Period Ended June 30,
2016 |
|
For the Six Month Period Ended
June 30, 2016 |
|
|
(Income) Expense |
|
(Income) Expense |
|
Certain Items
Impacting Net Service Revenue: |
|
|
|
|
|
|
Third party audit
reserve |
$ |
948 |
|
$ |
948 |
|
Certain Items
Impacting Operating Expenses: |
|
|
|
|
|
|
HCHB
implementation |
|
2,593 |
|
|
5,033 |
|
Acquisition
costs |
|
337 |
|
|
2,042 |
|
Legal fees -
non-routine |
|
459 |
|
|
1,976 |
|
Restructuring
activity |
|
1,485 |
|
|
3,247 |
|
Data center
relocation |
|
9 |
|
|
456 |
|
Certain Items
Impacting Total Other Income (Expense): |
|
|
|
|
|
|
Legal
settlements |
|
(265 |
) |
|
(806 |
) |
Miscellaneous, other
(income) expense, net |
|
70 |
|
|
506 |
|
|
|
|
|
|
|
|
Total |
$ |
5,636 |
|
$ |
13,402 |
|
|
|
|
|
|
|
|
Net of tax |
$ |
3,410 |
|
$ |
8,108 |
|
|
|
|
|
|
|
|
Diluted EPS |
$ |
0.10 |
|
$ |
0.24 |
|
(2) 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. |
(3) Adjusted net
service revenue is defined as net service revenue plus certain
items as described in footnote 1. |
(4) Adjusted net income
attributable to Amedisys, Inc. is defined as net income
attributable to Amedisys, Inc. calculated in accordance with GAAP
excluding certain items as described in footnote 1. |
(5) 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. |
(6) Adjusted EBITDA,
adjusted net service revenue, adjusted net income attributable to
Amedisys, Inc. 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. |
Contact:
Investor Contact:
Amedisys, Inc.
David Castille
Managing Director, Treasury/Finance
855-259-2046
IR@amedisys.com
Media Contact:
Amedisys, Inc.
Kendra Kimmons
Vice President, Marketing & Communications
(225) 299-3720
kendra.kimmons@amedisys.com
Amedisys (NASDAQ:AMED)
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Amedisys (NASDAQ:AMED)
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