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): JULY 29, 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 2 – FINANCIAL INFORMATION

 

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 29, 2015, Amedisys, Inc. (“we,” “us,” “our” or the “Company”) issued a press release announcing our financial results for the three and six-month periods ended June 30, 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 July 29, 2015, announcing the Company’s financial results for the three and six-month periods ended June 30, 2015 (furnished only)


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: July 29, 2015


Exhibit Index

 

Exhibit

  

Description

99.1    Press release dated July 29, 2015, announcing the Company’s financial results for the three and six-month periods ended June 30, 2015 (furnished only)


Exhibit 99.1

 

LOGO

 

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 SECOND QUARTER FINANCIAL RESULTS

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

BATON ROUGE, Louisiana (July 29, 2015) — Amedisys, Inc. (NASDAQ: AMED), a leading home health and hospice company, today reported its financial results for the three and six-month periods ended June 30, 2015.

Three-Month Periods Ended June 30, 2015 and 2014

 

  After adjusting for the 2015 period, $6.4 million ($3.9 million, net of income tax ) or $0.12 per diluted share and for the 2014 period $0.8 million ($0.5 million, net of income tax) or $0.02 per diluted share for certain items*, our adjusted results from continuing operations were as follows:

 

    Net service revenue of $314.1 million compared to $305.0 million in 2014.

 

    Net income from continuing operations attributable to Amedisys, Inc. of $14.5 million compared to net income from continuing operations of $8.0 million in 2014. (Net income from continuing operations attributable to Amedisys, Inc. of $10.6 million compared to net income from continuing operations attributable to Amedisys, Inc. of $7.6 million in 2014 on a GAAP basis.)

 

    Net income from continuing operations attributable to Amedisys, Inc. per diluted share of $0.43 compared to net income from continuing operations attributable to Amedisys, Inc. of $0.25 per diluted share in 2014. (Net income from continuing operations attributable to Amedisys, Inc. per diluted share $0.32 compared to net income from continuing operations attributable to Amedisys Inc. per diluted share of $0.23 per diluted share in 2014 on a GAAP basis.)

 

    Earnings before interest, taxes, depreciation and amortization attributable to continuing operations (“EBITDA”) of $31.7 million compared to $22.1 million in 2014.

Six-Month Periods Ended June 30, 2015 and 2014

 

  After adding back for the 2015 period, $80.5 million ($48.7 million, net of income tax ) or $1.48 per diluted share and for the 2014 period $16.9 million ($10.4 million, net of income tax) or $0.32 per diluted share for certain items*, our adjusted results from continuing operations were as follows:

 

    Net service revenue of $615.7 million compared to $603.7 million in 2014.

 

    Net income from continuing operations attributable to Amedisys, Inc. of $24.3 million compared to net income from continuing operations of $5.8 million in 2014. (Net loss from continuing operations attributable to Amedisys, Inc. of $24.4 million compared to net loss from continuing operations attributable to Amedisys, Inc. of $4.6 million in 2014 on a GAAP basis.)

 

    Net income from continuing operations attributable to Amedisys, Inc. per diluted share of $0.73 compared to net income from continuing operations attributable to Amedisys, Inc. of $0.18 per diluted share in 2014. (Net loss from continuing operations attributable to Amedisys, Inc. per diluted share $0.74 compared to net loss from continuing operations attributable to Amedisys Inc. per diluted share of $0.14 per diluted share in 2014 on a GAAP basis.)

 

    EBITDA of $58.0 million compared to $27.6 million in 2014.

Paul B. Kusserow, President and Chief Executive Officer stated, “We are extremely pleased with our second quarter performance. We made progress toward implementing our key strategies - delivering clinical excellence, empowering our people, improving operational efficiency and accelerating growth. I’d like to thank our team of 13,000 employees for delivering great results.”

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 10 & 11 for explanation of these certain items and the reconciliations of non-GAAP financial measures.

 

1


Earnings Call and Webcast Information

To participate on the conference call, please call a few minutes before 11:00 a.m. ET to either (844) 831-4549 (Toll free) or (815) 573-0979, use conference ID #91339246. A replay of the conference call will be available through August 28, 2015. The replay dial in number is (855) 859-2056 (Toll free) or (404) 537-3406 (Toll) and use conference ID #91339246.

A live webcast of the call will be accessible through our website on our Investor Relations section at the following web address: http://investors.amedisys.com.

Amedisys, Inc. (the “Company”) is headquartered in Baton Rouge, Louisiana and our common stock trades on the NASDAQ Global Select Market under the symbol “AMED”.

Additional information

Our company website address is www.amedisys.com. We use our website as a channel of distribution for important company information. Important information, including press releases, analyst presentations and financial information regarding our company, is routinely posted on and accessible on the Investor Relations subpage of our website, which is accessible by clicking on the tab labeled “Investors” on our website home page. We also use our website to expedite public access to time-critical information regarding our company in advance of or in lieu of distributing a press release or a filing with the SEC disclosing the same information. Therefore, investors should look to the Investor Relations subpage of our website for important and time-critical information. Visitors to our website can also register to receive automatic e-mail and other notifications alerting them when new information is made available on the Investor Relations subpage of our website.

Forward-Looking Statements

When included in this press release, words like “believes,” “belief,” “expects,” “plans,” “anticipates,” “intends,” “projects,” “estimates,” “may,” “might,” “would,” “should” and similar expressions are intended to identify forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a variety of risks and uncertainties that could cause actual results to differ materially from those described therein. These risks and uncertainties include, but are not limited to the following: changes in Medicare and other medical payment levels, our ability to open care centers, acquire additional care centers and integrate and operate these care centers effectively, changes in or our failure to comply with existing Federal and State laws or regulations or the inability to comply with new government regulations on a timely basis, competition in the home health industry, changes in the case mix of patients and payment methodologies, changes in estimates and judgments associated with critical accounting policies, our ability to maintain or establish new patient referral sources, our ability to attract and retain qualified personnel, changes in payments and covered services due to the economic downturn and deficit spending by Federal and State governments, future cost containment initiatives undertaken by third-party payors, our access to financing due to the volatility and disruption of the capital and credit markets, our ability to meet debt service requirements and comply with covenants in debt agreements, business disruptions due to natural disasters or acts of terrorism, our ability to integrate and manage our information systems, our ability to comply with requirements stipulated in our corporate integrity agreement and changes in law or developments with respect to any litigation relating to the Company, including various other matters, many of which are beyond our control.

Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on any forward-looking statement as a prediction of future events. We expressly disclaim any obligation or undertaking and we do not intend to release publicly any updates or changes in our expectations concerning the forward-looking statements or any changes in events, conditions or circumstances upon which any forward-looking statement may be based, except as required by law.

Non-GAAP Financial Measures

This press release includes the following non-GAAP financial measures as defined under SEC rules: EBITDA, defined as net income (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 from continuing operations attributable to Amedisys, Inc., defined as net income (loss) from continuing operations attributable to Amedisys, Inc. excluding certain other items, and adjusted net income from continuing operations attributable to Amedisys, Inc. per diluted share, defined as net income (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.

 

2


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

 

     June 30, 2015     December 31, 2014  
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 33,201     $ 8,032  

Patient accounts receivable, net of allowance for doubtful accounts of $14,228 and $14,317

     110,454       99,325  

Prepaid expenses

     7,568       8,493  

Other current assets

     17,147       19,708  
  

 

 

   

 

 

 

Total current assets

     168,370       135,558  

Property and equipment, net of accumulated depreciation of $149,801 and $146,438

     66,953       137,455  

Goodwill

     205,587       205,587  

Intangible assets, net of accumulated amortization of $25,374

     33,193       33,193  

Deferred income taxes

     140,485       124,788  

Other assets, net

     30,845       33,161  
  

 

 

   

 

 

 

Total assets

   $ 645,433     $ 669,742  
  

 

 

   

 

 

 
LIABILITIES AND EQUITY     

Current Liabilities:

    

Accounts payable

   $ 21,911     $ 16,056  

Payroll and employee benefits

     74,688       75,553  

Accrued expenses

     64,101       56,329  

Current portion of long-term obligations

     12,000       12,000  

Current portion of deferred income taxes

     3,329       2,385  
  

 

 

   

 

 

 

Total current liabilities

     176,029       162,323  

Long-term obligations, less current portion

     83,517       104,372  

Other long-term obligations

     5,837       5,285  
  

 

 

   

 

 

 

Total liabilities

     265,383       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; 34,719,797 and 34,569,526 shares issued; and 33,665,873 and 33,594,572 shares outstanding

     35       35  

Additional paid-in capital

     490,474       481,762  

Treasury stock at cost, 1,053,924 and 974,954 shares of common stock

     (22,026     (19,860

Accumulated other comprehensive income

     15       15  

Retained earnings

     (89,157     (64,785
  

 

 

   

 

 

 

Total Amedisys, Inc. stockholders’ equity

     379,341       397,167  

Noncontrolling interests

     709       595  
  

 

 

   

 

 

 

Total equity

     380,050       397,762  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 645,433     $ 669,742  
  

 

 

   

 

 

 

 

3


Statement of Operations Information

 

     For the Three-Month Periods
Ended June 30,
    For the Six-Month Periods
Ended June 30,
 
     2015     2014     2015     2014  

Net service revenue

   $ 314,152     $ 305,006     $ 615,724     $ 603,745  

Cost of service, excluding depreciation and amortization

     175,699       172,520       346,660       349,527  

General and administrative expenses:

        

Salaries and benefits

     71,249       71,400       139,804       154,571  

Non-cash compensation

     2,193       1,069       4,577       1,500  

Other

     42,113       35,522       75,183       78,222  

Provision for doubtful accounts

     2,756       4,242       5,732       9,135  

Depreciation and amortization

     4,615       7,692       11,152       15,594  

Asset impairment charge

     —         —         75,193       2,208  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

     298,625       292,445       658,301       610,757  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

     15,527       12,561       (42,577     (7,012

Other income (expense):

        

Interest income

     4       16       26       22  

Interest expense

     (2,416     (1,352     (4,842     (2,613

Equity in earnings from equity investments

     4,826       885       6,777       1,671  

Miscellaneous, net

     498       243       2,632       434  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense), net

     2,912       (208     4,593       (486
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) before income taxes

     18,439       12,353       (37,984     (7,498

Income tax (expense) benefit

     (7,566     (4,743     14,025       2,875  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income (loss) from continuing operations

     10,873       7,610       (23,959     (4,623

Discontinued operations, net of tax

     —         61       —         (216
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

     10,873       7,671       (23,959     (4,839

Net (income) loss attributable to noncontrolling interests

     (236     (52     (413     41  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to Amedisys, Inc.

   $ 10,637     $ 7,619     $ (24,372   $ (4,798
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per common share:

        

Income (loss) from continuing operations attributable to Amedisys, Inc. common stockholders

   $ 0.32     $ 0.24     $ (0.74   $ (0.14

Discontinued operations, net of tax

     —         —         —         (0.01
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to Amedisys, Inc. common stockholders

   $ 0.32     $ 0.24     $ (0.74   $ (0.15
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding

     33,004       32,251       32,871       32,058  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per common share:

        

Income (loss) from continuing operations attributable to Amedisys, Inc. common stockholders

   $ 0.32     $ 0.23     $ (0.74   $ (0.14

Discontinued operations, net of tax

     —         —         —         (0.01
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) attributable to Amedisys, Inc. common stockholders

   $ 0.32     $ 0.23     $ (0.74   $ (0.15
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding

     33,459       32,594       32,871       32,058  
  

 

 

   

 

 

   

 

 

   

 

 

 

Amounts attributable to Amedisys, Inc. common stockholders:

        

Income (loss) from continuing operations

   $ 10,637     $ 7,558     $ (24,372   $ (4,582

Discontinued operations, net of tax

     —         61       —         (216
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 10,637     $ 7,619     $ (24,372   $ (4,798
  

 

 

   

 

 

   

 

 

   

 

 

 

 

4


Cash Flow and Days Revenue Outstanding, Net Information

 

     For the Three-Month Periods Ended June 30,     For the Six-Month Periods Ended June 30,  
     2015     2014     2015     2014  

Net cash provided by (used in) operating activities

   $ 42,554     $ (89,129   $ 57,037     $ (95,471

Net cash used in investing activities

     (9,754     (4,472     (11,822     (9,392

Net cash (used in) provided by financing activities

     (2,731     101,986       (20,046     98,785  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     30,069       8,385       25,169       (6,078

Cash and cash equivalents at beginning of period

     3,132       2,840       8,032       17,303  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 33,201     $ 11,225     $ 33,201     $ 11,225  
  

 

 

   

 

 

   

 

 

   

 

 

 

Days revenue outstanding, net (1)

     31.0       32.0       31.0       32.0  

 

(1) Our calculation of days revenue outstanding, net at June 30, 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 period ended June 30, 2015 and 2014, respectively.

 

5


Supplemental Information - Home Health

 

     For the Three-Month Periods Ended June 30,  
     2015     2014  

Financial Information (in millions):

    

Medicare

   $ 188.3     $ 191.5  

Non-Medicare

     59.5       52.0  
  

 

 

   

 

 

 

Net service revenue

     247.8       243.5  

Cost of service

     142.3       139.3  
  

 

 

   

 

 

 

Gross margin

     105.5       104.2  

Other operating expenses

     67.1       73.2  
  

 

 

   

 

 

 

Operating income

   $ 38.4     $ 31.0  
  

 

 

   

 

 

 

Key Statistical Data:

    

Medicare:

    

Same Store Volume (2):

    

Revenue

     (1 %)      2

Admissions

     0     0

Recertifications

     (6 %)      2

Total (3):

    

Admissions

     43,890       43,974  

Recertifications

     24,607       26,283  

Completed episodes

     67,516       70,276  

Visits

     1,203,648       1,225,278  

Average revenue per completed episode including sequestration (4)

   $ 2,829     $ 2,788  

Visits per completed episode (5)

     17.5       17.5  

Non-Medicare:

    

Same Store Volume (2):

    

Revenue

     16     21

Admissions

     15     22

Recertifications

     8     15

Total (3):

    

Admissions

     23,762       20,731  

Recertifications

     8,637       8,057  

Visits

     482,689       412,481  

Total (3):

    

Cost per Visit

   $ 84.43     $ 85.08  

Visits

     1,686,337       1,637,759  

 

6


     For the Six-Month Periods Ended June 30,  
     2015     2014  

Financial Information (in millions):

    

Medicare

   $ 375.5     $ 380.2  

Non-Medicare

     113.7       100.0  
  

 

 

   

 

 

 

Net service revenue

     489.2       480.2  

Cost of service

     281.0       283.3  
  

 

 

   

 

 

 

Gross margin

     208.2       196.9  

Other operating expenses

     134.0       155.8  
  

 

 

   

 

 

 

Operating income before impairment (1)

   $ 74.2     $ 41.1  
  

 

 

   

 

 

 

Key Statistical Data:

    

Medicare:

    

Same Store Volume (2):

    

Revenue

     2     (2 %) 

Admissions

     2     (1 %) 

Recertifications

     (3 %)      (2 %) 

Total (3):

    

Admissions

     88,992       90,501  

Recertifications

     48,966       52,061  

Completed episodes

     132,505       137,748  

Visits

     2,371,898       2,429,817  

Average revenue per completed episode including sequestration (4)

   $ 2,813     $ 2,756  

Visits per completed episode (5)

     17.4       17.2  

Non-Medicare:

    

Same Store Volume (2):

    

Revenue

     18     11

Admissions

     16     11

Recertifications

     12     4

Total (3):

    

Admissions

     46,880       41,924  

Recertifications

     16,625       15,508  

Visits

     920,154       802,621  

Total (3):

    

Cost per Visit

   $ 85.36     $ 87.65  

Visits

     3,292,052       3,232,438  

 

(1) Operating income of $39.9 million on a GAAP basis for the six-month period ended June 30, 2014.
(2) Same store Medicare and Non-Medicare revenue, admissions or recertifications volume 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 including sequestration is the average Medicare revenue earned for each Medicare completed episode of care which includes the impact of sequestration.
(5) 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.

 

7


Supplemental Information - Hospice

 

     For the Three-Month Periods Ended June 30,  
     2015     2014  

Financial Information (in millions):

    

Medicare revenue

   $ 62.5     $ 57.7  

Non-Medicare revenue

     3.8       3.8  
  

 

 

   

 

 

 

Net service revenue

     66.3       61.5  

Cost of service

     33.4       33.2  
  

 

 

   

 

 

 

Gross margin

     32.9       28.3  

Other operating expenses

     16.0       15.2  
  

 

 

   

 

 

 

Operating income

   $ 16.9     $ 13.1  
  

 

 

   

 

 

 

Key Statistical Data:

    

Same Store Volume (2):

    

Medicare revenue

     10     (3 %) 

Non-Medicare revenue

     5     8

Hospice admits

     11     (3 %) 

Average daily census

     8     (4 %) 

Total (3):

    

Hospice admits

     4,713       4,350  

Average daily census

     4,944       4,649  

Revenue per day

   $ 147.53     $ 145.44  

Cost of service per day

   $ 74.07     $ 78.24  

Average length of stay

     86       99  
     For the Six-Month Periods Ended June 30,  
     2015     2014  

Financial Information (in millions):

    

Medicare revenue

   $ 118.9     $ 116.1  

Non-Medicare revenue

     7.6       7.4  
  

 

 

   

 

 

 

Net service revenue

     126.5       123.5  

Cost of service

     65.7       66.2  
  

 

 

   

 

 

 

Gross margin

     60.8       57.3  

Other operating expenses

     31.2       32.8  
  

 

 

   

 

 

 

Operating income before impairment (1)

   $ 29.6     $ 24.5  
  

 

 

   

 

 

 

Key Statistical Data:

    

Same Store Volume (2):

    

Medicare revenue

     6     (4 %) 

Non-Medicare revenue

     9     2

Hospice admits

     9     (4 %) 

Average daily census

     4     (5 %) 

Total (3):

    

Hospice admits

     9,277       8,945  

Average daily census

     4,740       4,685  

Revenue per day

   $ 147.51     $ 145.70  

Cost of service per day

   $ 76.47     $ 77.86  

Average length of stay

     88       99  

 

(1) Operating income of $23.5 million on a GAAP basis for the six-month period ended June 30, 2014.
(2) Same store Medicare and Non-Medicare revenue, Hospice admits or average daily census volume 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.

 

8


Supplemental Information - Corporate

 

     For the Three-Month Periods Ended June 30,  
     2015      2014  

Financial Information (in millions):

     

Other operating expenses

   $ 36.8      $ 26.7  

Depreciation and amortization

     3.0        4.8  
  

 

 

    

 

 

 

Total

   $ 39.8      $ 31.5  
  

 

 

    

 

 

 
     For the Six-Month Periods Ended June 30,  
     2015      2014  

Financial Information (in millions):

     

Other operating expenses

   $ 63.6      $ 60.8  

Depreciation and amortization

     7.6        9.6  
  

 

 

    

 

 

 

Total before impairment (1)

   $ 71.2      $ 70.4  
  

 

 

    

 

 

 

 

(1) Total of $146.4 million on a GAAP basis for the six-month period ended June 30, 2015.

 

9


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
June 30,
     For the Six-Month Periods Ended
June 30,
 
     2015      2014      2015     2014  

Net income (loss) attributable to Amedisys, Inc.

   $ 10,637      $ 7,619      $ (24,372   $ (4,798

Less:

          

Discontinued operations, net of tax

     —          61        —         (216
  

 

 

    

 

 

    

 

 

   

 

 

 

Net income (loss) from continuing operations attributable to Amedisys, Inc.

     10,637        7,558        (24,372     (4,582

Add:

          

Income tax expense (benefit)

     7,566        4,743        (14,025     (2,875

Interest expense, net

     2,412        1,336        4,816       2,591  

Depreciation and amortization

     4,615        7,692        11,152       15,594  
  

 

 

    

 

 

    

 

 

   

 

 

 

EBITDA (1)

     25,230        21,329        (22,429     10,728  

Add:

          

Certain items (2)

     6,427        784        80,467       16,884  
  

 

 

    

 

 

    

 

 

   

 

 

 

Adjusted EBITDA (3)

   $ 31,657      $ 22,113      $ 58,038     $ 27,612  
  

 

 

    

 

 

    

 

 

   

 

 

 

Adjusted Net Income From Continuing Operations Attributable to Amedisys, Inc. Reconciliation:

 

     For the Three-Month Periods Ended
June 30,
     For the Six-Month Periods Ended
June 30,
 
     2015      2014      2015     2014  

Net income (loss) attributable to Amedisys, Inc.

   $ 10,637      $ 7,619      $ (24,372   $ (4,798

Less:

          

Discontinued operations, net of tax

     —          61        —         (216
  

 

 

    

 

 

    

 

 

   

 

 

 

Net income (loss) from continuing operations attributable to Amedisys, Inc.

     10,637        7,558        (24,372     (4,582

Add:

          

Certain items (2)

     3,888        482        48,682       10,400  
  

 

 

    

 

 

    

 

 

   

 

 

 

Adjusted net income from continuing operations attributable to Amedisys, Inc. (4)

   $ 14,525      $ 8,040      $ 24,310     $ 5,818  
  

 

 

    

 

 

    

 

 

   

 

 

 

Adjusted Net Income From Continuing Operations Attributable to Amedisys, Inc. per Diluted Share:

 

    For the Three-Month Periods Ended
June 30,
    For the Six-Month Periods Ended
June 30,
 
    2015     2014     2015     2014  

Net income (loss) attributable to Amedisys, Inc. common stockholders per diluted share

  $ 0.32     $ 0.23     $ (0.74   $ (0.15

Less:

       

Discontinued operations, net of tax

    —         —         —         (0.01
 

 

 

   

 

 

   

 

 

   

 

 

 

Net income (loss) from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share

    0.32       0.23       (0.74     (0.14

Add:

       

Certain items (2)

    0.12       0.02       1.48       0.32  
 

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share (5)

  $ 0.43     $ 0.25     $ 0.73     $ 0.18  
 

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) EBITDA is defined as net income (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.

 

10


(2) The following details the certain other items for the three and six-month periods ended June 30, 2015 and 2014:

 

    For the Three-Month Period Ended June 30, 2015     For the Six-Month Period Ended June 30, 2015  
    (Income) Expense     Net     Diluted EPS     (Income)
Expense
    Net     Diluted EPS  

Life insurance proceeds

  $ —       $ —       $ —       $ (1,044   $ (632   $ (0.02

Partial claim recovery

    (307     (186     —          (1,125     (681     (0.02

Inventory and Data Security Reporting

    —         —         —         2,121       1,283       0.04  

Wage and Hour litigation

    8,000       4,840       0.14       8,000       4,840       0.15  

Unrealized gain on investment

    (3,945     (2,387     (0.07     (5,357     (3,241     (0.10

Asset impairment charge

    —         —         —         75,193       45,492       1.38  

Exit and restructuring activity costs

    2,679       1,621       0.05       2,679       1,621       0.05  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 6,427     $ 3,888     $ 0.12     $ 80,467     $ 48,682     $ 1.48  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    For the Three-Month Period Ended June 30, 2014     For the Six-Month Period Ended June 30, 2014  
    (Income) Expense     Net     Diluted EPS     (Income)
Expense
    Net     Diluted EPS  

Other intangibles impairment charge

  $ —       $ —       $ —       $ 2,208     $ 1,360     $ 0.04  

Exit and restructuring activity costs

    —         —         —         9,954       6,132       0.19  

Relator fees

    —         —         —         3,938       2,426       0.07  

OIG Self-Disclosure

    1,450       893       0.03       1,450       893       0.03  

Software write-off

    1,465       902       0.03       1,465       902       0.03  

Gain on sale of care centers

    (2,131     (1,313     (0.04     (2,131     (1,313     (0.04
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

  $ 784     $ 482     $ 0.02     $ 16,884     $ 10,400     $ 0.32  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(3) Adjusted EBITDA is defined as net income (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 from continuing operations attributable to Amedisys, Inc. is defined as net income (loss) from continuing operations attributable to Amedisys, Inc. excluding certain other items as described in footnote 2. Adjusted net income 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 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 from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share is defined as diluted income (loss) from continuing operations per share excluding the earnings per share effect of certain other items as described in footnote 2. Adjusted net 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 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.

 

11

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