EX-99.1 2 dex991.htm TEXT OF INVESTOR RELATIONS SLIDE SHOW IN USE BEGINNING FEBRUARY 13, 2006 Text of Investor Relations Slide Show in use beginning February 13, 2006
Amedisys, Inc.
NASDAQ: AMED
February 2006
Exhibit 99.1

1
Statements
contained
in
this
presentation
which
are
not
historical
facts
are
forward-looking
statements.
These
forward-looking
statements
and
all
other
statements
that
may
be
contained
in
this
presentation
that
are
not
historical
facts
are
subject
to
a
number
of
risks
and
uncertainties,
and
actual
results
may
differ
materially
than
those
forecasted.
Such
forward-looking
statements
are
estimates
reflecting
the
best
judgment
of
Amedisys,
Inc.
management
based
upon
currently
available
information.
Certain
factors
which
could
affect
the
accuracy
of
such
forward-looking
statements
are
identified
in
the
public
filings
made
by
Amedisys,
Inc.
with
the
Securities
and
Exchange
Commission,
and
forward-looking
statements
contained
herein,
or
other
public
statements
of
Amedisys,
Inc.
or
its
management
should
be
considered
in
light
of
those
factors.
Forward Looking Statements

2
Investment Highlights
•
Large, growing and fragmented industry
•
Focus on Medicare home nursing
•
Strong internal growth
•
Demonstrated ability to identify and integrate acquisitions
•
Proven operating model
•
Experienced management team

3
Management Team
•
William F. Borne, Chairman and Chief Executive Officer
-
CEO since founding the Company in 1982
-
Registered nurse, extensive hospital administrative and clinical
experience
•
Larry R. Graham, President and Chief Operating Officer
-
Joined Amedisys in 1996; COO since 1999; President in 2004
-
General Health Systems; Arthur Andersen
•
Gregory H. Browne, Chief Financial Officer
-
Joined Amedisys as CFO in 2002
-
CEO for PeopleWorks, Ramsay Health Care, Ramsay-HMO

4
Corporate Overview
•
Leading provider of home nursing services
•
232 locations in the southern United States
•
Services include skilled nursing and therapy
•
Medicare accounts for > 90% of revenue
•
Hospice care accounts for ~ 7% of revenue

5
Our Locations
•
Largest home nursing provider in the
southern United States
-
219 home nursing locations
-
13 hospice locations
9
9
13
13
12
12
22
22
55
55
36
36
14
14
3
3
38
38
13
13
1
1
4
4
February 2006
1
1
3
3
6
6
2
2

6
Our Strategy
•
Focus on Medicare-eligible patients
•
Develop and deploy specialized nursing programs
•
Expand disease management capabilities
•
Prioritize internal growth
•
Select, acquire and integrate quality home care agencies
•
Leverage cost-efficient operating platform

7
•
Home health
care is a $62.8
billion industry
•
Home nursing
is the largest
segment in the
home health
industry
•
Medicare
spending for
home nursing
totaled $13.1
billion in 2005
Home Health Care Spending
Home Health Industry Expenditures ($ billions)
Medicare
Home Nursing
$13.1
Home Nursing
(Commercial,
Medicaid &
Other)
$23.3
Home Nursing
$46.1
Infusion
Therapy
$5.5
Durable Medical
Equipment
$2.8
Respiratory
Therapy
$8.4
Hospice $9.7
Source:  Company Reports,  CMS and CIBC World Markets Corp. estimates for 2005

8
Home Nursing Market
•
Industry is highly fragmented
•
7,500 Medicare-certified nursing agencies
•
Most are single site or small regional providers:
-
Independently-owned agencies
-
Visiting nurse associations
-
Facility-
and hospital-based agencies
•
Publicly-owned providers account for less than 7% of the
home nursing market

9
Industry Growth Drivers
•
Trend from inpatient to home-based care:
-
Patient preference
-
Payor incentives
-
Technology advancements
•
Demographics –
aging population
•
Increased prevalence of chronic and co-morbid conditions

10
Internal Growth
-
Overall industry growth
-
Expanded and more effective sales force
-
Comprehensive range of clinical programs
-
Enhanced referral source education efforts
-
Increased focus on start-ups
•
Strong recent internal growth in Medicare admissions
-
Approximately 18% for 2005
•
Internal growth being driven by:

11
Acquisition Strategy
Disciplined approach
•
Acquisition criteria:
-
Defined pricing objectives
-
Targeted geographic profile
-
Compatible payor mix
-
Consistent clinical metrics
-
Expandable referral base
-
Opportunities for internal growth
•
Target hospital-based and multi-site agencies

12
Recent Acquisitions
NC
1
Davidson County
November 2005
AR, OK
2
Hulbert Therapy Services
January 2006
OK
7
ASAP Home Health
January 2006
Tennessee
2
St. Thomas Health Services
June 2005
KY, IN, OH, TN
9
SpectraCare Home Health Services
August 2005
Virginia
2
NCare
August 2005
TN, FL, KY, VA, IN
66*
Housecall Medical Resources
July 2005
Mississippi
1
Covington County Hospital
May 2005
Maryland
1
Baltimore/Washington Medical Center
March 2005
South Carolina
10
Winyah Health Care Group
February 2005
*Includes nine hospice locations
Location
Locations
Prior Ownership
Date

13
Acquisition…Housecall
Medical Resources
4
4
30
30
29
29
2
2
1
1

14
Acquisition…Housecall
Medical Resources
180 days
Transition Timetable
$6.5
Estimated Synergies
$11.5
TTM Adjusted EBITDA
$103.0
TTM Revenue
$106.4
Purchase Price
Transaction Summary
$ in Millions

15
Investments in Technology
•
Strategic advantages from technology
•
Standardized processes:
-
Automated review of assessment forms
-
Automatic scheduling
-
Web-based HR and payroll system
•
Centralized management of clinical oversight/utilization
-
Real time episode analysis
-
Daily/weekly review of quality indicators
-
Executive information system
•
Point of care trial currently underway

16
Local Level
•
Clinical Nurse Review of
Assessments
•
Standardized Care Plans
•
Physician Review/Approval
•
Monthly Audits
Comprehensive Compliance Program
Regional Level
•
Unannounced
Compliance & Billing
Audits
•
Regional Directors
Resolve Errors
Corporate Level
•
Semiannual Clinical/Compliance Reviews
•
Compliance Review of Metric Variances
•
Compliance Manager Site Visits
•
Compliance Training for all Employees
•
Compliance Concerns Hotline
•
Annual Sarbanes-Oxley Audit

17
Medicare Prospective Payment System
•
Implemented in October 2000
•
Base payment for 60-day episode of care
-
Adjusted for patient acuity and market factors
-
Reviewed and updated annually
•
Encourages efficient delivery of care

18
Medicare Reimbursement
•
Outlook for 2006
-
Market basket freeze
-
Rural add-on: 5%
-
CBSA based wage index
•
Outlook for 2007
-
Market basket
-
Case mix weighting
-
Therapy threshold

19
Financial Highlights
•
Increasing revenue
•
Expanded margins
•
Strong cash flow
•
EPS growth
•
Solid balance sheet

20
Annual Financial Results
EBITDA
is
net
income
before
provision
for
income
taxes,
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.  Rather, EBITDA is presented because it is a
widely
accepted
supplemental
financial
measure
that
we
believe
provides
relevant
and
useful
information.
Our
calculation
of
EBITDA
may
not
be
comparable
to
a
similarly
titled
measure reported by other companies, since all companies do not calculate this non-GAAP measure in the same manner.
2003
2004
Net revenue
$142.5
$227.1
Year-over-year growth
(1)
9.2%
59.4%
Gross margin
$83.9
$131.0
Percentage of revenue
58.9%
57.7%
Operating income
$14.3
$33.4
Percentage of revenue
10.1%
14.7%
EBITDA
$17.5
$37.5
Percentage of revenue
12.3%
16.5%
Fully-diluted EPS
$0.83
$1.51
Year-over-year growth
(1)
40.7%
81.9%
$ millions, except per share data
(1)
2003 growth based on adjusted 2002 results that exclude nonrecurring
and one-time charges

21
Current Financial Results
EBITDA
is
net
income
before
provision
for
income
taxes,
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.
Rather, EBITDA is presented because it is a widely accepted
supplemental financial measure that we believe provides relevant
and useful information.  Our calculation of EBITDA may not be comparable to a similarly titled measure reported by other
companies, since all companies do not calculate this non-GAAP measure in the same manner.
Net revenue
Quarter-over-Quarter growth
Gross margin
Percentage of revenue
Operating income
Percentage of revenue
EBITDA
Percentage of revenue
Fully-diluted EPS
Quarter-over-Quarter growth
$ millions, except per share data
9/30/04
9/30/05
$162.7
$262.7
61.4%
$94.0
$152.1
57.8%
57.9%
$23.4
$38.2
14.4%
14.5%
$26.6
$44.4
16.4%
16.9%
$1.12
$1.44
28.2%
Nine  Months Ended
157.1%
64.6%
9/30/04
9/30/05
$58.5
$112.2
91.8%
$32.8
$63.2
56.1%
56.3%
$8.4
$14.0
14.4%
12.5%
$9.8
$16.4
16.7%
14.6%
$0.39
$0.48
22.4%
Three  Months Ended
77.8%
57.9%

22
Net Revenue
•
Revenue of $112.2 million
in 3Q 2005
•
Quarter-over-quarter
increase of 91.8%
•
Continued strong internal
volume growth
•
Successful completion of
Housecall
acquisition
•
Continued deployment of
specialty programs
Year-Over-Year Revenue
($ millions)
$0
$50
$100
$150
$200
$250
2001
2002
2003
2004
Quarterly Revenue
($ millions)
$0
$20
$40
$60
$80
$100
$120
Q1
Q2
Q3
Q4
2004
2005

23
EBITDA
•
EBITDA of $16.4 million in 
3Q 2005
•
Quarter-over-quarter
increase of 68.2%
•
EBITDA of $44.4 million for
nine months ended 9/30/05
EBITDA
is
net
income
before
provision
for
income
taxes,
interest
expense,
and
depreciation
and
amortization.
EBITDA
should
not
be
considered
as
an
alternative
to,
or
more
meaningful than, income before income taxes, cash flow from operating activities, or other traditional indicators of operating performance.  Rather, EBITDA is presented because it is a
widely accepted supplemental financial measure that we believe provides relevant and useful information.  Our calculation of EBITDA may not be comparable to a similarly titled
measure reported by other companies, since all companies do not calculate this non-GAAP measure in the same manner.
Year-Over-Year EBITDA
($ millions)
$0
$10
$20
$30
$40
2001
2002
2003
2004
Quarterly EBITDA
($ millions)
$0
$10
$20
Q1
Q2
Q3
Q4
2004
2005

24
Earnings Per Share
•
Fully-diluted EPS of $.48
for 3Q 2005
•
Quarter-over-quarter
increase of 22.4%
•
Fully diluted EPS of $1.44
for 9 months ended 9/30/05
•
Period-over-period 
increase of 28.2%
*Results exclude nonrecurring and one-time charges
Quarterly EPS
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
Q1
Q2
Q3
Q4
2004
2005
Year-Over-Year EPS
$0.00
$0.20
$0.40
$0.60
$0.80
$1.00
$1.20
$1.40
$1.60
2001*
2002*
2003
2004

25
Capitalization Summary
September 30, 2005
Cash and cash equivalents
$20,700
Total debt and capital lease obligations
64,700
Total stockholders' equity
182,400
Total capitalization
$247,100
$ in thousands

26
$510 million
$2.33-$2.43
16.4 million
Guidance
Net Revenue
Diluted EPS
Diluted Shares
February 2006
$380 million
$1.95-$2.01
16.0 million
FY 2005
FY 2006

27
Investment Highlights
•
Large, growing and fragmented industry
•
Focus on Medicare home nursing
•
Strong internal growth
•
Demonstrated ability to identify and integrate acquisitions
•
Proven operating model
•
Experienced management team