EX-99.1 2 d625978dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

 

Contacts:    Investor Contact:    Media Contact:
   Amedisys, Inc.    Amedisys, Inc.
   Tom Dolan    Jacqueline Chen Valencia
   Senior Vice President, Finance and Treasurer    Senior Vice President – Marketing & Communications
   (225) 292-3391    (225) 299-3688
   tom.dolan@amedisys.com    jacqueline.chen@amedisys.com

AMEDISYS REPORTS THIRD QUARTER FINANCIAL RESULTS

RECORDS U.S DEPARTMENT OF JUSTICE SETTLEMENT CHARGE

TO HOST CONFERENCE CALL TODAY AT 10:00 A.M. ET

BATON ROUGE, Louisiana (November 12, 2013) — Amedisys, Inc. (NASDAQ: AMED), a leading home health and hospice company, today reported its financial results for the third quarter ended September 30, 2013.

U.S. Department of Justice Settlement Charge

During the third quarter of 2013, we recorded an accrual of $150 million related to the tentative settlement of both the U.S. Department of Justice investigation and the Stark Law Self-Referral matter (the “U.S. Department of Justice settlement”). We have agreed to this tentative settlement without any admission of wrongdoing in order to resolve these matters and to avoid the uncertainty and expense of protracted litigation. In connection with the tentative settlement, we expect to enter into a corporate integrity agreement with the Office of the Inspector General – HHS.

On November 11, 2013, we entered into a second amendment to our Credit Agreement dated as of October 26, 2012, amending certain covenants, representations and other provisions to, among other things allow, for the U.S. Department of Justice settlement. In connection with entering into the second amendment, we repaid the $20 million outstanding principal amount of our Series B Senior Notes due March 25, 2014.

Three-Month Periods Ended September 30, 2013 and 2012

 

  After adding back for the 2013 period $145.0 million ($90.2 million, net of tax) or $2.86 per diluted share for the U.S. Department of Justice settlement, proceeds from our D&O insurance and certain other items* and deducting for the 2012 period $1.4 million ($1.8 million, net of income tax) or $0.06 per diluted share for certain other items*, our adjusted results were as follows:

 

    Net service revenue of $301.6 million compared to $364.3 million in 2012.

 

    Net (loss) income from continuing operations attributable to Amedisys, Inc., of $(0.2) million compared to $8.5 million in 2012. (Net (loss) income from continuing operations of $(90.4) million compared to $10.4 million in 2012 on a GAAP basis.)

 

    Net (loss) income from continuing operations attributable to Amedisys, Inc. per diluted share of $(0.01) compared to $0.28 per diluted share in 2012. (Net (loss) income from continuing operations attributable to Amedisys, Inc. per diluted share of $(2.87) compared to $0.34 per diluted share in 2012 on a GAAP basis.)

 

    Earnings before interest, taxes, depreciation and amortization attributable to continuing operations (“EBITDA”) of $8.7 million compared to $26.4 million in 2012.

Nine-Month Periods Ended September 30, 2013 and 2012

 

  After adding back for the 2013 period $152.1 million ($94.6 million, net of tax) or $3.04 per diluted share for the U.S. Department of Justice settlement, proceeds from our D&O insurance and certain other items* and after adding back for the 2012 period $3.7 million ($1.2 million, net of income tax) or $0.04 per diluted share for certain other items*, our adjusted results were as follows:

 

    Net service revenue of $947.1 million compared to $1.1 billion in 2012.

 

    Net income from continuing operations attributable to Amedisys, Inc., of $10.1 million compared to $26.8 million in 2012. (Net (loss) income from continuing operations of $(84.5) million compared to $25.7 million in 2012 on a GAAP basis.)

 

    Net income from continuing operations attributable to Amedisys, Inc. per diluted share of $0.32 compared to $0.89 per diluted share in 2012. (Net (loss) income from continuing operations attributable to Amedisys, Inc. per diluted share of $(2.72) compared to $0.85 per diluted share in 2012 on a GAAP basis.)

 

    EBITDA of $46.5 million compared to $81.5 million

 

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


William F. Borne, Chief Executive Officer stated, “Adjusting for the accrual related to our U.S. Department of Justice settlement, and for other certain items disclosed in more detail elsewhere in this earnings release, we reported results for the quarter that were below expectations. We ended the quarter with an adjusted loss from continuing operations of 1 cent per diluted share which caused us to lower our guidance for the year. Consistent with previous communications, these adjusted numbers do not include legal costs associated with the U.S. Department of Justice and other matters. Results were impacted by soft volume in both our home health and hospice business units and higher costs, primarily in our home health cost of revenue line.

Updated 2013 Guidance

 

    Net service revenue is anticipated to be in the range of $1.240 billion to $1.250 billion.

 

    Diluted earnings per share is expected to be in the range of $0.20 to $0.25 based on an estimated 31.7 million shares outstanding.

This guidance excludes the accrual related to our U.S. Department of Justice settlement, and other certain items disclosed in more detail elsewhere in this earnings release. However, our guidance includes an estimate of legal costs associated with our on-going legal matters.

We urge caution in considering the current trends and 2013 guidance disclosed in this press release. The home health and hospice industry is highly competitive and subject to intensive regulations, and trends and guidance are subject to numerous factors, risks, and uncertainties, some of which are referenced in the cautionary language below and others that are described more fully in our reports filed with the Securities and Exchange Commission (“SEC”) including our Annual Report on Form 10-K for the fiscal year ended December 31, 2012, and subsequent Quarterly Reports on Form 10-Q, and current reports on Form 8-K which can be found on the SEC’s internet website, http://www.sec.gov, and our internet website, http://www.amedisys.com. We disclaim any obligations to update disclosed information on trends.

Earnings Call and Webcast Information

To participate in the conference call, please call a few minutes before 10:00 a.m. ET on Tuesday, November 12, 2013, to either (877) 512-9171 (Toll free) or (815) 573-0979 (Toll), use conference ID #93623188. A replay of the conference call will be available through November 19, 2013. The replay dial in number is (855) 859-2056 (Toll free) or (404) 537-3406 (Toll), use conference ID #93623188.

The call will also be available through our website and for seven days thereafter at the following web address: http://investors.amedisys.com.

We are headquartered in Baton Rouge, Louisiana. Our common stock trades on the NASDAQ Global Select Market under the symbol “AMED.”

Additional information

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

Forward-Looking Statements

When included in this press release, words like “believes,” “belief,” “expects,” “plans,” “anticipates,” “intends,” “projects,” “estimates,” “may,” “might,” “would,” “should” and similar expressions are intended to identify forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a variety of risks and uncertainties that could cause actual results to differ materially from those described therein. These risks and uncertainties include, but are not limited to the following: changes in Medicare and other medical payment levels, our ability to open care centers, acquire additional care centers and integrate and operate these care centers effectively, our ability to divest care centers currently held for sale, changes in or our failure to comply with existing Federal and State laws or regulations or the inability to comply with new government

 

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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 agree on the terms of a settlement to resolve both the U.S. Department of Justice investigation and the Stark Law Self-Referral matter or fund required settlement payments in the manner currently contemplated and changes in law or developments with respect to any litigation or investigations relating to the Company, including the SEC investigation, the OIG Self-Disclosure issues and various other matters, many of which are beyond our control.

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

Non-GAAP Financial Measures

This press release includes the following non-GAAP financial measures as defined under SEC rules: EBITDA, defined as net (loss) income 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 the accrual for the U.S. Department of Justice settlement, proceeds from our D&O insurance and certain other items*, adjusted net income from continuing operations attributable to Amedisys, Inc., defined as net (loss) income from continuing operations attributable to Amedisys, Inc. excluding the accrual for the U.S. Department of Justice settlement, proceeds from our D&O insurance and certain other items*, and adjusted net income from continuing operations attributable to Amedisys, Inc. per diluted share, defined as net (loss) income from continuing operations attributable to Amedisys, Inc. common stockholders per diluted share excluding the accrual for the U.S. Department of Justice settlement, proceeds from our D&O insurance and 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

 

     September 30,
2013
    December 31,
2012
 
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 43,626     $ 14,545  

Patient accounts receivable, net of allowance for doubtful accounts of $15,601 and $20,994

     111,149       169,172  

Prepaid expenses

     11,460       10,631  

Deferred income taxes

     57,008       —     

Other current assets

     9,819       11,440  

Assets held for sale

     1,348       —     
  

 

 

   

 

 

 

Total current assets

     234,410       205,788  

Property and equipment, net of accumulated depreciation of $125,392, and $113,154

     160,077       156,709  

Goodwill

     208,126       209,594  

Intangible assets, net of accumulated amortization of $24,926 and $23,457

     42,332       47,050  

Deferred tax asset

     83,123       92,804  

Other assets, net

     26,501       18,650  
  

 

 

   

 

 

 

Total assets

   $ 754,569     $ 730,595  
  

 

 

   

 

 

 
LIABILITIES AND EQUITY     

Current Liabilities:

    

Accounts payable

   $ 24,362     $ 29,175  

Accrued charge related to U.S. Department of Justice settlement

     150,000       —     

Payroll and employee benefits

     68,923       79,341  

Accrued expenses

     54,340       54,855  

Current portion of long-term obligations

     34,855       35,807  

Current portion of deferred income taxes

     —          5,609  
  

 

 

   

 

 

 

Total current liabilities

     332,480       204,787  

Long-term obligations, less current portion

     36,000       66,904  

Other long-term obligations

     8,297       4,671  
  

 

 

   

 

 

 

Total liabilities

     376,777       276,362  
  

 

 

   

 

 

 

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; 33,278,397 and 31,876,508 share issued; and 32,409,474 and 31,086,619 share outstanding

     33       32  

Additional paid-in capital

     462,962       450,792  

Treasury stock at cost, 868,923 and 789,889 shares of common stock

     (18,080     (17,116

Accumulated other comprehensive income

     15       15  

Retained earnings

     (67,932     18,617  
  

 

 

   

 

 

 

Total Amedisys, Inc. stockholders’ equity

     376,998       452,340  

Noncontrolling interests

     794       1,893  
  

 

 

   

 

 

 

Total equity

     377,792       454,233  
  

 

 

   

 

 

 

Total liabilities and equity

   $ 754,569     $ 730,595  
  

 

 

   

 

 

 

 

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Statement of Operations Information

 

     For the Three-Month Periods
Ended September 30,
    For the Nine-Month Periods
Ended September 30,
 
     2013     2012     2013     2012  

Net service revenue

   $ 301,639     $ 364,343     $ 947,165     $ 1,090,673  

Cost of service, excluding depreciation and amortization

     175,483       206,970       539,582       612,929  

General and administrative expenses:

        

Salaries and benefits

     73,993       78,711       229,123       246,155  

Non-cash compensation

     1,653       1,284       4,933       6,065  

Other

     40,360       46,760       123,734       135,564  

Provision for doubtful accounts

     3,971       5,487       12,531       15,788  

Depreciation and amortization

     10,471       9,771       32,152       29,375  

U.S. Department of Justice settlement

     150,000       —          150,000       —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses

     455,931       348,983       1,092,055       1,045,876  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating (loss) income

     (154,292     15,360       (144,890     44,797  

Other income (expense):

        

Interest income

     18       10       40       52  

Interest expense

     (687     (1,982     (2,523     (6,058

Equity in earnings from equity investments

     354       390       1,054       1,091  

Gain on sale of care centers

     1,451       —          1,808       —     

Miscellaneous, net

     5,102       (9     5,296       298  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total other income (expense), net

     6,238       (1,591     5,675       (4,617
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) income before income taxes

     (148,054     13,769       (139,215     40,180  

Income tax benefit (expense)

     56,962       (3,332     53,454       (14,296
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss) income from continuing operations

     (91,092     10,437       (85,761     25,884  

Discontinued operations, net of tax

     (686     (442     (2,036     (2,460
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income

     (91,778     9,995       (87,797     23,424  

Net loss (income) attributable to noncontrolling interests

     709       (73     1,248       (200
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income attributable to Amedisys, Inc.

   $ (91,069   $ 9,922     $ (86,549   $ 23,224  
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic earnings per common share:

        

(Loss) income from continuing operations attributable to Amedisys, Inc. common stockholders

   $ (2.87   $ 0.34     $ (2.72   $ 0.86  

Discontinued operations, net of tax

     (0.02     (0.01     (0.06     (0.08
  

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ (2.89   $ 0.33     $ (2.78   $ 0.78  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding

     31,505       30,055       31,102       29,741  
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per common share:

        

(Loss) income from continuing operations attributable to Amedisys, Inc. common stockholders

   $ (2.87   $ 0.34     $ (2.72   $ 0.85  

Discontinued operations, net of tax

     (0.02     (0.01     (0.06     (0.08
  

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ (2.89   $ 0.33     $ (2.78   $ 0.77  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding

     31,505       30,423       31,102       30,068  
  

 

 

   

 

 

   

 

 

   

 

 

 

Amounts attributable to Amedisys, Inc. common stockholders:

        

(Loss) income from continuing operations

   $ (90,383   $ 10,364     $ (84,513   $ 25,684  

Discontinued operations, net of tax

     (686     (442     (2,036     (2,460
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss) income

   $ (91,069   $ 9,922     $ (86,549   $ 23,224  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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Cash Flow and Days Revenue Outstanding, Net Information

 

     For the Three-Month Periods ended
September 30,
    For the Nine-Month Periods ended
September 30,
 
     2013     2012     2013     2012  

Net cash provided by operating activities

   $ 27,885     $ 21,761     $ 93,862     $ 53,866  

Net cash used in investing activities

     (11,241     (12,318     (35,456     (40,249

Net cash used in financing activities

     (3,136     (7,495     (29,325     (22,515
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     13,508       1,948       29,081       (8,898

Cash and cash equivalents at beginning of period

     30,118       37,158       14,545       48,004  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of period

   $ 43,626     $ 39,106     $ 43,626     $ 39,106  
  

 

 

   

 

 

   

 

 

   

 

 

 

Days revenue outstanding, net(1)

     32.0       38.7       32.0       38.7  

 

(1) Our calculation of days revenue outstanding, net at September 30, 2013 and 2012 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 September 30, 2013 and 2012, respectively.

Supplemental Information - Home Health

 

     For the Three-Month Periods Ended    

For the

Nine-Month

Period Ended

 
     March 31,
2013
    June 30,
2013
    September 30,
2013
    September 30,
2013
 

Financial Information (in millions):

        

Medicare

   $ 213.0     $ 204.9     $ 193.7     $ 611.6  

Non-Medicare

     49.6       46.0       43.4       139.0  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net service revenue

     262.6       250.9       237.1       750.6  

Cost of service

     150.8       143.6       140.9       435.3  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

     111.8       107.3       96.2       315.3  

Other operating expenses

     85.0       81.8       79.7       246.5  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

   $ 26.8     $ 25.5     $ 16.5     $ 68.8  
  

 

 

   

 

 

   

 

 

   

 

 

 

Key Statistical Data:

        

Medicare:

        

Same Store Volume (1)

        

Revenue

     (8 %)      (10 %)      (12 %)      (10 %) 

Admissions

     3     0     (2 %)      0

Recertifications

     (17 %)      (18 %)      (21 %)      (19 %) 

Total (2):

        

Admissions

     50,117       47,825       45,481       143,423  

Recertifications

     28,723       27,534       26,150       82,407  

Completed Episodes

     76,019       75,594       70,498       222,111  

Visits

     1,373,446       1,325,248       1,254,903       3,953,597  

Average revenue per completed episode (3)

   $ 2,778     $ 2,831     $ 2,822     $ 2,810  

Visits per completed episode (4)

     17.5       17.7       17.3       17.5  

Non-Medicare(2):

        

Admissions

     21,675       18,283       17,884       57,842  

Recertifications

     8,223       7,555       7,279       23,057  

Visits

     423,903       381,770       359,822       1,165,495  

Total(2):

        

Cost per Visit

   $ 83.89     $ 84.11     $ 87.33     $ 85.05  

Visits

     1,797,349       1,707,018       1,614,725       5,119,092  

 

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     For the Three-Month Periods Ended     For the Year
Ended
 
     March 31,
2012
    June 30,
2012
    September 30,
2012
    December 30,
2012
    December 31,
2012
 

Financial Information (in millions):

          

Medicare

   $ 233.4     $ 231.7     $ 227.2     $ 224.3     $ 916.6  

Non-Medicare

     57.0       61.6       63.0       55.8       237.4  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net service revenue

     290.4       293.3       290.2       280.1       1,154.0  

Cost of service

     164.8       167.0       168.9       162.1       662.8  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

     125.6       126.3       121.3       118.0       491.2  

Other operating expenses

     92.9       89.6       90.2       90.0       362.7  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income before impairment (5)

   $ 32.7     $ 36.7     $ 31.1     $ 28.0     $ 128.5  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Key Statistical Data:

          

Medicare:

          

Same Store Volume (1)

          

Revenue

     (8 %)      (8 %)      (5 %)      (7 %)      (7 %) 

Admissions

     (2 %)      2     1     1     0

Recertifications

     (5 %)      (7 %)      (6 %)      (12 %)      (8 %) 

Total (2):

          

Admissions

     49,150       48,433       47,429       47,730       192,742  

Recertifications

     34,634       34,240       34,071       31,679       134,624  

Completed Episodes

     79,233       80,438       78,794       79,329       317,794  

Visits

     1,569,067       1,563,444       1,515,731       1,438,125       6,086,367  

Average revenue per completed episode (3)

   $ 2,876     $ 2,884     $ 2,864     $ 2,846     $ 2,867  

Visits per completed episode (4)

     18.7       19.1       18.9       18.4       18.8  

Non-Medicare (2):

          

Admissions

     22,406       23,160       23,469       21,209       90,244  

Recertifications

     9,528       10,518       11,273       10,040       41,359  

Visits

     489,276       526,712       535,280       465,248       2,016,516  

Total (2):

          

Cost per Visit

   $ 80.08     $ 79.91     $ 82.33     $ 85.19     $ 81.81  

Visits

     2,058,343       2,090,156       2,051,011       1,903,373       8,102,883  

 

(1) Medicare revenue, admissions or recertifications volume is the percent increase (decrease) in our Medicare revenue, admissions or recertifications for the period as a percent of the Medicare revenue, admissions or recertifications of the prior year.
(2) Based on continuing operations for all periods presented.
(3) 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.
(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.
(5) Operating loss of $133.6 million and $33.1 million on a GAAP basis for the three-month period and year ended December 31, 2012, respectively.

 

7


Supplemental Information - Hospice

 

     For the Three-Month Periods Ended    

For the

Nine-Month

Period Ended

 
     March 31,
2013
    June 30,
2013
    September 30,
2013
    September 30,
2013
 

Financial Information (in millions):

        

Medicare

   $ 62.8     $ 61.6     $ 60.6     $ 185.0  

Non-Medicare

     3.8       3.8       3.9       11.5  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net service revenue

     66.6       65.4       64.5       196.5  

Cost of service

     35.2       34.5       34.5       104.2  
  

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

     31.4       30.9       30.0       92.3  

Other operating expenses

     19.7       18.1       17.8       55.6  
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

   $ 11.7     $ 12.8     $ 12.2     $ 36.7  
  

 

 

   

 

 

   

 

 

   

 

 

 

Key Statistical Data:

        

Same store Medicare revenue growth (1)

     (5 %)      (11 %)      (13 %)      (10 %) 

Hospice Admits

     4,957       4,655       4,352       13,964  

Average daily census

     5,071       5,006       4,917       4,998  

Revenue per day

   $ 145.98     $ 143.61     $ 142.52     $ 144.04  

Cost of service per day

   $ 77.04     $ 75.34     $ 75.79     $ 76.06  

Average length of stay

     103       99       98       100  

 

     For the Three-Month Periods Ended     For the Year
Ended
 
     March 31,
2012
    June 30,
2012
    September 30,
2012
    December 31,
2012
    December 31,
2012
 

Financial Information (in millions):

          

Medicare

   $ 65.1     $ 69.5     $ 70.3     $ 67.8     $ 272.7  

Non-Medicare

     4.1       4.0       3.8       4.1       16.0  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net service revenue

     69.2       73.5       74.1       71.9       288.7  

Cost of service

     36.3       37.8       38.1       37.1       149.3  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gross margin

     32.9       35.7       36.0       34.8       139.4  

Other operating expenses

     17.6       18.9       20.2       20.9       77.6  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

   $ 15.3     $ 16.8     $ 15.8     $ 13.9     $ 61.8  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Key Statistical Data:

          

Same store Medicare revenue growth (1)

     17     22     13     3     13

Hospice Admits

     4,854       4,849       4,667       4,629       18,999  

Average daily census

     5,171       5,478       5,592       5,381       5,406  

Revenue per day

   $ 147.05     $ 147.31     $ 144.10     $ 145.24     $ 145.89  

Cost of service per day

   $ 77.00     $ 75.68     $ 73.97     $ 74.85     $ 75.34  

Average length of stay

     92       95       102       106       99  

 

(1) Same store Medicare revenue volume is the percent increase (decrease) in our Medicare revenue for the period as a percent of the Medicare revenue of the prior year.

 

8


Supplemental Information —  Corporate

 

     For the Three-Month Periods Ended    

For the

Nine-Month

Period Ended

 
     March 31,
2013
    June 30,
2013
    September 30,
2013
    September 30,
2013
 

Financial Information (in millions):

        

Depreciation and amortization

   $ 6.7     $ 8.5     $ 7.5     $ 22.7   

U.S. Department of Justice settlement

     —          —          150.0       150.0   

Other operating expenses

     26.4       25.8       25.5       77.7   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating (loss) income

   $ (33.1   $ (34.3   $ (183.0   $ (250.4
  

 

 

   

 

 

   

 

 

   

 

 

 

 

     For the Three-Month Periods Ended     For the Year
Ended
 
     March 31,
2012
    June 30,
2012
    September 30,
2012
    December 31,
2012
    December 31,
2012
 

Financial Information (in millions):

          

Depreciation and amortization

   $ 6.2     $ 6.0     $ 5.8     $ 6.5     $ 24.5  

Other operating expenses

     28.1       31.6       25.8       27.8       113.3  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating (loss) income

   $ (34.3   $ (37.6   $ (31.6   $ (34.3   $ (137.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

9


AMEDISYS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE 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
September 30,
    For the Nine-Month
Periods Ended
September 30,
 
     2013      2012      2013      2012   

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

   $ (90,383   $ 10,364      $ (84,513   $ 25,684  

Add:

        

Provision for income taxes

     (56,962     3,332        (53,454     14,296  

Interest expense, net

     669        1,972        2,483        6,006  

Depreciation and amortization

     10,471        9,771        32,152        29,375  
  

 

 

   

 

 

   

 

 

   

 

 

 

EBITDA (1)

   $ (136,205   $ 25,439      $ (103,332   $ 75,361  
  

 

 

   

 

 

   

 

 

   

 

 

 

Add:

        

Certain items (2)

     144,955        (1,427     152,090        3,686  

Intangible write-off

     (1,542     —          (3,828     —     

Tax adjustments

     1,534        2,404        1,534        2,404  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA (3)

   $ 8,742      $ 26,416      $ 46,464      $ 81,451  
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Net (Loss) Income From Continuing Operations Attributable to Amedisys, Inc.:

 

     For the Three-Month
Periods Ended
September 30,
    For the Nine-Month
Periods Ended
September 30,
 
     2013     2012     2013     2012  

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

   $ (90,383   $ 10,364      $ (84,513   $ 25,684  

Add:

        

Certain items (2)

     90,181        (1,833     94,576        1,153  
  

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ (202   $ 8,531      $ 10,063      $ 26,837  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

10


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

     For the Three-Month
Periods Ended
September 30,
    For the Nine-Month
Periods Ended
September 30,
 
     2013     2012     2013     2012  

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

   $ (2.87   $ 0.34      $ (2.72   $ 0.85  

Add:

        

Certain items (2)

     2.86        (0.06     3.04        0.04  
  

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ (0.01   $ 0.28      $ 0.32      $ 0.89  
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(1) EBITDA is defined as net (loss) income from continuing operations attributable to Amedisys, Inc. before provision for income taxes, net interest expense, and depreciation and amortization. EBITDA should not be considered as an alternative to, or more meaningful than, income before income taxes, cash flow from operating activities, or other traditional indicators of operating performance. This calculation of EBITDA may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate this non-GAAP financial measure in the same manner.
(2) The following details the U.S. Department of Justice settlement, proceeds from our D&O insurance and certain other items for the three and nine month periods ended September 30, 2013 and 2012:

 

     For the Three- Month
Period Ended
September 30, 2013
    For the Nine- Month
Period Ended
September 30, 2013
 
     (Income)
Expense
    Net     Diluted
EPS
    (Income)
Expense
    Net     Diluted
EPS
 

U.S. Department of Justice settlement

   $ 150,000      $ 93,878      $ 2.98      $ 150,000      $ 93,878      $ 3.02  

D&O proceeds

     (5,530     (3,406     (0.11     (5,530     (3,406     (0.11

Exit activity costs

     —          —          —          1,569        966        0.03  

Impairment of intangibles

     1,542        950        0.03        3,828        2,358        0.08  

Gain on sale of care centers

     (1,451     (894     (0.03     (1,808     (1,114     (0.04

Legal fees (investigations)

     931        573        0.02        4,568        2,814        0.09  

Tax adjustment

     (1,534     (1,534     (0.05     (1,534     (1,534     (0.05

OIG self-disclosure

     997        614        0.02        997        614        0.02  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ 144,955      $ 90,181      $ 2.86      $ 152,090      $ 94,576      $ 3.04  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

     For the Three- Month
Period Ended
September 30, 2012
    For the Nine- Month
Period Ended
September 30, 2012
 
     (Income)
Expense
    Net     Diluted
EPS
    (Income)
Expense
    Net     Diluted
EPS
 

Legal fees (investigations)

   $ 977      $ 571      $ 0.02      $ 6,090        3,557        0.12  

Tax adjustment

     (2,404     (2,404     (0.08     (2,404     (2,404     (0.08
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

   $ (1,427   $ (1,833   $ (0.06   $ 3,686      $ 1,153      $ 0.04  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(3) Adjusted EBITDA is defined as net (loss) income from continuing operations attributable to Amedisys, Inc. before provision for income taxes, net interest expense, depreciation and amortization excluding the accrual for the U.S. Department of Justice settlement, proceeds from our D&O insurance and certain other items*. 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 (loss) income from continuing operations attributable to Amedisys, Inc. excluding the accrual for the U.S. Department of Justice settlement, proceeds from our D&O insurance and certain other items*. 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 (loss) earnings from continuing operations per share excluding the earnings per share effect of the accrual for the U.S. Department of Justice settlement, proceeds from our D&O insurance and other certain other items*. 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