AMED Amedisys Inc

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): APRIL 29, 2015

Commission File Number: 0-24260

 

 

 

 

AMEDISYS, INC.

(Exact Name of Registrant as specified in its Charter)

 

 

 

Delaware		11-3131700
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

5959 S. Sherwood Forest Blvd., Baton Rouge, LA 70816

(Address of principal executive offices, including zip code)

(225) 292-2031 or (800) 467-2662

(Registrant’s telephone number, including area code)

 

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

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SECTION 2 – FINANCIAL INFORMATION

 

ITEM 2.02.

RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On April 29, 2015, Amedisys, Inc. (“we,” “us,” “our” or the “Company”) issued a press release announcing our financial results for the first quarter ended March 31, 2015. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The information presented in Item 2.02 of this Current Report on Form 8-K and Exhibit 99.1 attached hereto shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, unless we specifically state that the information is to be considered “filed” under the Exchange Act or specifically incorporate it by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.

SECTION 7 – REGULATION FD

 

ITEM 7.01.

REGULATION FD DISCLOSURE

Item 2.02 of this Current Report on Form 8-K is incorporated herein by reference.

The information presented in Item 7.01 of this Current Report on Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, unless we specifically state that the information is to be considered “filed” under the Exchange Act or specifically incorporate it by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.

SECTION 9 – FINANCIAL STATEMENTS AND EXHIBITS

 

ITEM 9.01.

FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits.

 

99.1

Press release dated April 29, 2015, announcing the Company’s financial results for the first quarter March 31, 2015 (furnished only)

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Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

AMEDISYS, INC. (Registrant)
By:		/s/ Scott G. Ginn
		Scott G. Ginn
		Senior Vice President of Accounting and Controller
		(Principal Accounting Officer)

DATE: April 29, 2015

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Exhibit Index

 

Exhibit		Description
99.1		Press release dated April 29, 2015, announcing the Company’s financial results for the first quarter ended March 31, 2015 (furnished only)

Exhibit 99.1

 

 

Contact:		Investor Contact:		Media Contact:
		Amedisys, Inc.		Amedisys, Inc.
		David Castille		Kendra Kimmons
		Managing Director, Treasury/Finance		Managing Director, Marketing & Communications
		(225) 299-3391		(225) 299-3720
		david.castille@amedisys.com		kendra.kimmons@amedisys.com

AMEDISYS REPORTS FIRST QUARTER FINANCIAL RESULTS

AMEDISYS TO HOST CONFERENCE CALL TODAY AT 11:00 A.M. ET

BATON ROUGE, Louisiana (April 29, 2015) — 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 pages 9 & 10 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”.

 

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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.

 

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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

 

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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	)

 

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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.

 

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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.

 

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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.

 

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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.

 

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AMEDISYS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAPP 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:

 

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		For the Three-Month Period Ended March 31, 2015												For the Three-Month Period Ended March 31, 2014
		(Income) Expense				Net				Diluted EPS				(Income) 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.

 

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