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): MAY 12, 2015

Commission File Number: 0-24260

 

LOGO

 

 

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))

 

 

 


SECTION 7 – REGULATION FD

ITEM 7.01. REGULATION FD DISCLOSURE

As of May 12, 2015, representatives of Amedisys, Inc. (the “Company”) will begin making presentations at investor conferences using slides containing the information attached to this Current Report on Form 8-K as Exhibit 99.1. The Company expects to use these slides, in whole or in part, and possibly with modifications, in connection with presentations to investors, analysts and others during 2015.

By filing this report on Form 8-K and furnishing this information, the Company makes no admission as to the materiality of any information in this report that is required to be disclosed solely by reason of Regulation FD.

The information contained in the slides is summary information that is intended to be considered in the context of the Company’s Securities and Exchange Commission (“SEC”) filings and other public announcements that it may make, by press release or otherwise, from time to time. The Company undertakes no duty or obligation to publicly update or revise the information contained in this report, although it may do so from time to time as its management believes is warranted. Any such updating may be made through the filing of other reports or documents with the SEC, through press releases or through other public disclosure.

In accordance with General Instruction B.2 of this Current Report on Form 8-K, the information presented herein shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as previously set forth by specific reference in such a filing.

Use of our Website to Distribute Material Company 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.

Certain 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.

 

2


SECTION 9 – FINANCIAL STATEMENTS AND EXHIBITS

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

 

(d) Exhibits.

99.1 Investor Relations Slide Show in use beginning May 12, 2015 (furnished only)

 

3


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: May 12, 2015

 

4


Exhibit Index

 

Exhibit No.  

  

Description

99.1

   Investor Relations Slide Show in use beginning May 12, 2015 (furnished only)

 

5



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Investor Presentation
May 2015
EXHIBIT 99.1


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Forward-looking Statements
This presentation may include forward-looking statements as defined by the Private
Securities Litigation Reform Act of 1995. These forward-looking statements are based
upon current expectations and assumptions about our business that are subject to a
variety of risks and uncertainties that could cause actual results to differ materially from
those described in this presentation. You should not rely on forward-looking statements as
a prediction of future events.
Additional
information
regarding
factors
that
could
cause
actual
results
to
differ
materially
from those discussed in any forward-looking statements are described in reports and
registration statements we file with the SEC, including our Annual Report on Form 10-K
and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K,
copies
of
which
are
available
on
the
Amedisys
internet
website
http://www.amedisys.com
or by contacting the Amedisys Investor Relations department at (225) 292-2031.
We disclaim any obligation to update any 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.
www.amedisys.com
NASDAQ: AMED
We encourage everyone to visit the
Investors Section of our website at
www.amedisys.com, where we have
posted additional important
information such as press releases,
profiles concerning our business and
clinical operations and control
processes, and SEC filings.
We intend to use our website to
expedite public access to time-critical
information regarding the Company in
advance of or in lieu of distributing a
press release or a filing with the SEC
disclosing the same information.
1


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Amedisys Snapshot
Founded in 1982, publicly
listed 1994
395 care centers in 34
states
13,000 employees
57,000 patients currently
on census
2014 revenue of $1.2
billion
355,000 patients seen
annually
Over 7.5 million annual
patient visits
Amedisys Home Health Care Centers (316 locations)
Amedisys Hospice Care Centers (79 locations)
2
Overview


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($ in millions, except per share data)
1Q14
2Q14
3Q14
4Q14
1Q15
Net Revenue
$299
$305
$300
$301
$302
Gross Margin %
41.0%
43.4%
43.3%
43.0%
43.3%
Total G&A Expenses
126
118
114
113
111
EBITDA
$5
$22
$24
$23
$26
EBITDA Margin
1.8%
7.3%
7.9%
7.6%
8.7%
EPS
($0.07)
$0.25
$0.28
$0.27
$0.30
Summary Adjusted Financials –
Quarterly
1
3


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Business Overview
Business
$ (in millions)  /
% of Revenue
Revenue per
Visit / Revenue
per Day
Gross Margin %
Reimbursement Type
Home Health
Episodic
$207 / 69%
$160
46.1%
60-day episode of care
Non-Medicare Per Visit
$35 / 11%
$110
21.6%
Per visit
Total Home Health
$241 / 80%
Hospice
$60 / 20%
$147
46.4%
98% routine care; daily rate
Total
$302 / 100%
Based on 1Q15 financials.  Gross margin computed by subtracting cost per visit from revenue per visit in home health and cost per day from hospice
revenue per day
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Amedisys Vision
5
high margins
Strengthen & grow the core
Lead Industry
consolidation
Become employer of choice
Outstanding clinical outcomes
Extend the core
Simplify
Op Model
Build
Capacity
Clinical
Excellence
Organic
Growth
Adjacent
Growth
Options
Deliver superior patient outcomes using a simple, efficient, and
clinically driven operating model to drive growth and lead in a
consolidating industry
Leading cost structure driving


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Operating Platform Transition –
HomeCare HomeBase
AMS3 testing resulted in significant operational disruption
Conducted third-party comparison of AMS3 to commercially available solutions
HomeCare HomeBase presents a compelling alternative to proprietary
development at lower cost
Company-wide implementation targeted in 18-24 months
Anticipate
$20
million
in
annual
G&A
savings
after
implementation
and
reduction
in
annual
capital
expenditures
below
$10
million
beginning
in
2016
6


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Strategic Plan –
Moving to Execution
Goals
Improved Clinical Quality
Movement to value-based reimbursement
Continued margin expansion
Operational streamlining and standardization
Maximizing efficiency of field clinicians
Leverage operational scale
Growth
Organic
Increasing capacity
Optimizing business development efforts
Inorganic / M&A
Near-term –
tuck-ins
Long-term –
regional expansion and adjacencies
7
People
Managed Care
Processes and Workflow
Business Development
Amedisys Priorities
IT Optimization
Clinical Distinction and Protocols


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Selective tuck-ins
while
platform and operating processes are
being optimized
More aggressive acquisitions
once our cost structure provides us an
advantage in the form of operating synergies
Short Term:
Tuck-in
Focus
Long Term:
Strategic
Accretive
Acquisitions
Expand our footprint strategically
Counties in CON states
Key referral partners (e.g.,
hospitals / hospital systems)
Home care / hospice alignment
Local density to enhance efficiency
(e.g., scheduling)
New geographies
Scale to leverage
investments
M&A Strategy –
Short and Long-Term
8


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Adjusted
Cash
Flow
2
9
($ in Millions)
1Q14
2Q14
3Q14
4Q14
1Q15
Operating cash flow
(4)
27
31
29
30
Changes in working capital
(2)
(3)
(6)
11
(16)
Operating cash flow, net
(6)
24
25
40
14
Capital Expenditures
(6)
(4)
(1)
(2)
(2)
Required Debt Repayments
(3)
(3)
(3)
(3)
(3)
Free Cash Flow
(15)
17
21
34
9
($ in Millions)
LTM
Free Cash Flow
81
Required Debt Repayments
12
Other Sources
4
LTM Debt Reduction
$97


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Balance Sheet
Assets ($ in MM)
12/31/14
3/31/15
Cash
$8
$3
Accounts Receivable, net
99
111
Property and Equipment
137
57
Goodwill
206
206
Deferred Tax Asset
125
147
Other
95
99
Total Assets
670
623
Liabilities and Equity
Other Liabilities
$155
$156
Long-Term Debt
118
100
Equity
397
367
Total Liabilities and Equity
670
623
Total Leverage Ratio
1.5x
1.1x
Days Sales Outstanding
29
32
10


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($ in millions)
1Q14
4Q14
1Q15
Net Revenue
$237
$240
$241
Gross Margin %
39.5%
42.1%
42.6%
Key Operating Statistics
Same store Medicare revenue growth
(7%)
4%
6%
Same store non-Medicare revenue growth
1%
26%
20%
Medicare recert rate
38%
37%
37%
Cost per visit
$90.28
$86.29
$86.33
Home
Health
Segment
1
11


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($ in millions)
1Q14
4Q14
1Q15
Net Revenue
$62
$61
$60
Gross Margin %
46.8%
46.4%
46.3%
Key Operating Statistics
Same store ADC growth
(6%)
(3%)
1%
Same store admission growth
(5%)
2%
7%
Revenue per day
$145.95
$147.16
$147.48
Cost per day
$77.47
$78.62
$79.12
Hospice
Segment
1
12


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Contact Information
Ronnie LaBorde
Vice Chairman and Chief Financial Officer
ronnie.laborde@amedisys.com
David Castille
Managing Director, Finance
david.castille@amedisys.com
Amedisys, Inc.
5959 S. Sherwood Forest Blvd.
Baton Rouge, LA 70816
Office: 225.292.2031
13


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Endnotes
1.
The financial results for the three month periods ended March 31, 2014, June 30, 2014, September 30, 2014, December 31, 2014 and
March 31, 2015 are adjusted for certain items and should be considered a non-GAAP financial measure.  A reconciliation of these non-
GAAP financial measures is included in the corresponding 8-K detailing quarterly results for each respective reporting period.
2.
Operating cash flow detailed in this schedule is adjusted for DOJ settlement payments made in 2Q14 ($115 million) and 4Q14 ($35
million).
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