EX-99.1 2 dex991.htm INVESTOR RELATIONS SLIDE SHOW Investor Relations Slide Show
Amedisys, Inc.
www.amedisys.com
NASDAQ: AMED
July 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
•
Don Loverich –
Principal Accounting Officer & Treasurer
-
Joined Amedisys as SVP of Finance in 2005
-
Controller and Principal Accounting Officer for US Unwired, Inc.

4
Corporate Overview
•
Leading provider of home nursing services
•
247 locations primarily 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
-
235 home nursing locations
-
12 hospice locations
12
12
13
13
10
10
24
24
47
47
39
39
14
14
3
3
37
37
15
15
1
1
5
5
June 2006
1
1
4
4
5
5
2
2
CON State
Non-CON State
3
3

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 14% for Q2 2006
•
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
WV
3
West Virginia Home Health
June 2006
SC
1
Loris Conway Health Care Services
April 2006
NC
1
Davidson County
November 2005
AR, OK
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
*Includes nine hospice locations
Location
Locations
Prior Ownership
Date

13
CON State
Non-CON State
Acquisition…Housecall Medical Resources
4
4
30
30
29
29
2
2
1
1

14
Acquisition…Housecall Medical Resources
$6.5
Estimated Synergies
$11.5
TTM Adjusted EBITDA
$103.0
TTM Revenue
$106.8
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
Comprehensive Compliance Program
Local Level
•
Clinical Nurse Review of
Assessments
•
Standardized Care Plans
•
Physician Review/Approval
•
Monthly Audits
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 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.
$ millions, except per share data
Year-over-year growth
Fully-diluted EPS
Percentage of revenue
EBITDA
Percentage of revenue
Operating income
Percentage of revenue
Gross margin
Year-over-year growth
Net revenue
24.5%
81.9%
$1.88
$1.51
15.3%
16.8%
$58.5
$38.1
13.1%
14.7%
$50.1
$33.4
57.3%
57.7%
$218.5
$131.0
68.0%
59.4%
$381.6
$227.1
2005
2004

21
Quarterly 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.
$ millions, except per share data
6/30/06
6/30/05
Fully-diluted EPS
Percentage of revenue
EBITDA
Percentage of revenue
Operating income
Percentage of revenue
Gross margin
Quarter-over-Quarter growth
Net revenue
$0.55
$0.50
13.7%
17.7%
$18.2
$14.2
11.8%
15.9%
$15.7
$12.7
57.3%
58.7%
$76.2
$47.0
65.9%
40.8%
$132.9
$80.1
Three Months Ended

22
Net Revenue
•
Revenue of $381.6 million       
in 2005
•
Year-over-year increase          
of 68.0%
•
Revenue of $132.9 million     
2Q 2006
•
Quarter-over-quarter increase 
of 65.9%
•
Continued strong internal growth
•
Completed Housecall acquisition
•
Continued deployment of
specialty programs
Year-Over-Year Revenue
($ millions)
$0
$100
$200
$300
$400
$500
2001
2002
2003
2004
2005
Quarterly Revenue
($ millions)
$0
$20
$40
$60
$80
$100
$120
$140
Q1
Q2
Q3
Q4
2005
2006

23
EBITDA
•
EBITDA of $58.5 million  
for 2005
•
Year-over-year increase of
53.5%
•
EBITDA of $18.2 million  
2Q 2006
•
Quarter-over-quarter
increase of 28.2%
EBITDA
is
net
income
before
provision
for
income
taxes,
interest
expense,
and
depreciation
and
amortization.
EBITDA
should
not
be
considered
as
an
alternative
to,
or
more
meaningful
than,
income
before
income
taxes,
cash
flow
from
operating
activities,
or
other
traditional
indicators
of
operating
performance.
Rather,
EBITDA
is
presented
because
it
is
a
widely
accepted
supplemental
financial
measure
that
we
believe
provides
relevant
and
useful
information.
Our
calculation
of
EBITDA
may
not
be
comparable
to
a
similarly
titled
measure
reported
by
other
companies,
since
all
companies
do
not
calculate
this
non-GAAP
measure
in
the
same
manner.
Year-Over-Year EBITDA
($ millions)
$0
$10
$20
$30
$40
$50
$60
$70
2001
2002
2003
2004
2005
Quarterly EBITDA
($ millions)
$0
$10
$20
Q1
Q2
Q3
Q4
2005
2006

24
Earnings Per Share
•
Fully-diluted EPS of $1.88
for 2005
•
Year-over-year increase of
24.5%
•
Fully diluted EPS of $0.55
for 2Q 2006
*Results exclude nonrecurring and one-time charges
Year-Over-Year EPS
$0.00
$0.50
$1.00
$1.50
$2.00
2001*
2002*
2003
2004
2005
Quarterly EPS
$0.00
$0.10
$0.20
$0.30
$0.40
$0.50
$0.60
Q1
Q2
Q3
Q4
2005
2006

25
Capitalization Summary
June 30, 2006
Cash and cash equivalents
$8,000
Total debt and capital lease obligations
50,400
Total stockholders' equity
215,900
Total capitalization
$266,300
$ in thousands

26
$520 million
$2.25-$2.35
16.4 million
Guidance
Net Revenue
Diluted EPS
Diluted Shares
August 2006
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

28
Investor Information
www.amedisys.com
You
may
find
the
following
items
located
in
the
“Investors”
section
of our web site
•
Investor Presentation
•
Press Releases (since 2002)
•
SEC Filings
•
Annual Report
•
Analyst Coverage
•
Executive Profiles
•
Investor Fact Sheet
•
Email Alert Sign Up

29
Contact Information
Larry Graham
President/COO
Amedisys, Inc.
11100 Mead Road, Suite 300
Baton Rouge, LA 70816
Office –
225.292.2031
Fax –
225.295.9624
lgraham@amedisys.com
Brian Ritchie
Noonan Russo,
A division of Euro RSCG Life PR
200 Madison Avenue, 7
th
Floor
New York, NY 10016
Office –
212.845.4269
Fax –
212.845.4260
Brian.Ritchie@eurorscg.com

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