8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(D)

OF THE SECURITIES EXCHANGE ACT OF 1934

DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): MAY 7, 2018

Commission File Number: 0-24260

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.)

3854 American Way, Suite A, 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)

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))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

SECTION 2 — FINANCIAL INFORMATION

ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On May 7, 2018, Amedisys, Inc. (“we,” “us,” “our” or the “Company”) issued a press release announcing our financial results for the first quarter ended March 31, 2018. 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 (the “Securities Act”), 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.

In addition, a copy of the supplemental slides which will be discussed during the Company’s earnings call at 11:00 a.m. ET on Tuesday, May 8, 2018 is attached to this report as Exhibit 99.2 and 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 or the Exchange Act.

SECTION 9 – FINANCIAL STATEMENTS AND EXHIBITS

ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits.

99.1	Press release dated May 7, 2018, announcing the Company’s financial results for the first quarter ended March 31, 2018 (furnished only)
99.2	Supplemental slides provided in connection with the first quarter 2018 earnings call of the Company (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
	Chief Financial Officer
	(Principal Accounting Officer)

DATE: May 7, 2018

EX-99.1

Exhibit 99.1

AMEDISYS REPORTS FIRST QUARTER 2018 FINANCIAL RESULTS

AND REAFFIRMS 2018 GUIDANCE

BATON ROUGE, Louisiana (May 7, 2018) — Amedisys, Inc. (NASDAQ: AMED) today reported its financial results for the three month period ended March 31, 2018.

Three Month Periods Ended March 31, 2018 and 2017

• Net service revenue increased $34.6 million to $399.3 million compared to $364.7 million in 2017⁽¹⁾.

• Net income attributable to Amedisys, Inc. of $27.2 million compared to $15.1 million in 2017.

• Net income attributable to Amedisys, Inc. per diluted share of $0.79 compared to $0.44 in 2017.

Adjusted Quarterly Results*

• Adjusted EBITDA of $41.7 million compared to $32.0 million in 2017.

• Adjusted net income attributable to Amedisys, Inc. of $27.3 million compared to $16.0 million in 2017.

• Adjusted net income attributable to Amedisys, Inc. per diluted share of $0.79 compared to $0.47 in 2017.

* See pages 8 and 9 for the definition and reconciliations of non-GAAP financial measures to GAAP measures.

(1) Subsequent to our adoption of Accounting Standards Updates 2014-09 and 2015-14 on January 1, 2018, using the full retrospective method, all amounts previously classified as provision for doubtful accounts are now classified as implicit price concessions in determining the transaction price of our net service revenue.

Paul B. Kusserow, President and Chief Executive Officer stated, “I am proud of our first quarter results as once again we have made great progress in all four key areas of our strategy. Total home health admissions and volumes are moving in the right direction as our business development staffing strategy takes hold. Continued strong performance from our hospice segment, personal care growth and disciplined cost controls have helped to deliver significant increases in revenue, EBITDA and earnings per share as compared to the first quarter of 2017. We have once again improved our position as an industry leader in quality, having increased our STARs score for the twelfth straight quarter. Our continued focus on our employees can be seen in our stabilized turnover rates and the investment we have made in operational efficiency has resulted in increased productivity from our clinical staff. We will continue to focus on organic growth in all three of lines of business throughout the remainder of 2018 and have a balance sheet that provides flexibility to execute upon a range of capital allocation priorities. A special thanks to our nearly 18,000 employees that helped to deliver such an impressive quarter.”

2018 Guidance

• Net service revenue is anticipated to be in the range of $1.60 billion to $1.64 billion.

• Adjusted EBITDA is anticipated to be in the range of $158 million to $163 million.

• Adjusted diluted earnings per share is anticipated to be in the range of $2.97 to $3.08 based on an estimated 34.85 million shares outstanding.

This guidance excludes the effects of any future acquisitions, if any are made.

We urge caution in considering the current trends and 2018 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, 2017, 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.

Earnings Call and Webcast Information

Amedisys will host a conference call on Tuesday, May 8, 2018, at 11:00 a.m. ET to discuss its first quarter results. To participate on the conference call, please call before 11:00 a.m. ET to either (877) 524-8416 (Toll-Free) or (412) 902-1028 (Toll). A replay of the conference call will be available through June 8, 2018 by dialing (877) 660-6853 (Toll-Free) or (201) 612-7415 (Toll) and entering conference ID #13679111.

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.

Non-GAAP Financial Measures

This press release includes reconciliations of the most comparable financial measures calculated and presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”) to non-GAAP financial measures. The non-GAAP financial measures as defined under SEC rules are as follows: (1) adjusted EBITDA, defined as net income attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization, excluding certain items; (2) adjusted net income attributable to Amedisys, Inc., defined as net income attributable to Amedisys, Inc. excluding certain items; and (3) adjusted net income attributable to Amedisys, Inc. per diluted share, defined as net income attributable to Amedisys, Inc. common stockholders per diluted share excluding certain items. Management believes that these non-GAAP financial measures, when reviewed in conjunction with GAAP financial measures, are useful gauges of our current performance and are also included in internal management reporting. These non-GAAP financial measures should be considered in addition to, and not more meaningful than or as an alternative to the GAAP financial measures presented in this earnings release and the company’s financial statements. Non-GAAP measures as presented herein may not be comparable to similarly titled measures reported by other companies since not all companies calculate these non-GAAP measures consistently.

Additional information

Amedisys, Inc. (the “Company”) is a leading healthcare at home Company delivering personalized home health, hospice and personal care. Amedisys is focused on delivering the care that is best for our patients, whether that is home-based personal care; recovery and rehabilitation after an operation or injury; care focused on empowering them to manage a chronic disease; or hospice care at the end of life. We partner with 3,000 hospitals and 59,000 physicians nationwide have chosen Amedisys as a partner in post-acute care. Founded in 1982, headquartered in Baton Rouge, LA with an executive office in Nashville, TN, Amedisys is a publicly held company. With 17,900 employees, in 420 care centers in 34 states and the District of Columbia, Amedisys is dedicated to delivering the highest quality of care to the doorsteps of more than 369,000 patients and clients in need every year. For more information about the Company, please visit: www.amedisys.com.

We use our website as a channel of distribution for important company information. Important information, including press releases, investor 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. 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 healthcare industry, our ability to integrate our personal care segment into our business efficiently, 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 by federal and state governments, future cost containment initiatives undertaken by third-party payors, our access to financing, 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, manage and keep our information systems secure, 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.

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Contact:	Investor Contact:	Media Contact:
	Amedisys, Inc.	Amedisys, Inc.
	David Castille	Kendra Kimmons
	Managing Director, Treasury/Finance	Vice President, Marketing & Communications
	(855) 259-2046	(225) 299-3720
	IR@amedisys.com	kendra.kimmons@amedisys.com

2

AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(Amounts in thousands, except per share data)

(Unaudited)

	For the Three Month Period Ended March 31,
	2018			2017
Net service revenue	$	399,262		$	364,661
Cost of service, excluding depreciation and amortization		238,309			216,329
General and administrative expenses:
Salaries and benefits		75,631			74,459
Non-cash compensation		4,044			3,874
Other		41,680			40,417
Depreciation and amortization		3,593			4,417
Operating expenses		363,257			339,496
Operating income		36,005			25,165
Other income (expense):
Interest income		120			19
Interest expense		(1,703	)		(1,068	)
Equity in earnings (loss) from equity method investments		1,860			(106	)
Miscellaneous, net		601			1,112
Total other income (expense), net		878			(43	)
Income before income taxes		36,883			25,122
Income tax expense		(9,563	)		(9,923	)
Net income		27,320			15,199
Net income attributable to noncontrolling interests		(161	)		(69	)
Net income attributable to Amedisys, Inc.	$	27,159		$	15,130
Basic earnings per common share:
Net income attributable to Amedisys, Inc. common stockholders	$	0.80		$	0.45
Weighted average shares outstanding		33,971			33,443
Diluted earnings per common share:
Net income attributable to Amedisys, Inc. common stockholders	$	0.79		$	0.44
Weighted average shares outstanding		34,592			34,073

3

AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(Amounts in thousands, except share data)

	March 31, 2018			December 31, 2017
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	120,005		$	86,363
Patient accounts receivable, net		192,936			201,196
Prepaid expenses		12,430			7,329
Other current assets		18,148			16,268
Total current assets		343,519			311,156
Property and equipment, net of accumulated depreciation of $130,877 and $146,814		28,213			31,122
Goodwill		322,199			319,949
Intangible assets, net of accumulated amortization of $31,288 and $30,610		45,382			46,061
Deferred income taxes		53,119			56,064
Other assets, net		49,856			49,130
Total assets	$	842,288		$	813,482
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	22,966		$	25,384
Payroll and employee benefits		88,585			89,936
Accrued expenses		88,842			89,104
Current portion of long-term obligations		10,417			10,638
Total current liabilities		210,810			215,062
Long-term obligations, less current portion		75,782			78,203
Other long-term obligations		6,138			3,791
Total liabilities		292,730			297,056
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; 35,861,469 and 35,747,134 shares issued; and 34,056,627 and 33,964,767 shares outstanding		35			35
Additional paid-in capital		575,926			568,780
Treasury stock at cost, 1,804,842 and 1,782,367 shares of common stock		(55,019	)		(53,713	)
Accumulated other comprehensive income		15			15
Retained earnings		27,363			204
Total Amedisys, Inc. stockholders’ equity		548,320			515,321
Noncontrolling interests		1,238			1,105
Total equity		549,558			516,426
Total liabilities and equity	$	842,288		$	813,482

4

AMEDISYS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS AND DAYS REVENUE OUTSTANDING, NET

(Amounts in thousands, except statistical information)

(Unaudited)

	For the Three Month Period Ended March 31,
	2018			2017
Cash Flows from Operating Activities:
Net income	$	27,320		$	15,199
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		3,593			4,417
Non-cash compensation		4,044			3,874
401(k) employer match		2,567			2,227
Loss (gain) on disposal of property and equipment		563			(16	)
Deferred income taxes		2,945			9,445
Equity in (earnings) loss from equity method investments		(1,860	)		106
Amortization of deferred debt issuance costs		178			185
Return on equity investment		625			150
Changes in operating assets and liabilities, net of impact of acquisitions:
Patient accounts receivable		8,260			(6,152	)
Other current assets		(6,982	)		(3,403	)
Other assets		46			(990	)
Accounts payable		(1,523	)		93
Accrued expenses		(1,807	)		1,386
Other long-term obligations		2,348			576
Net cash provided by operating activities		40,317			27,097
Cash Flows from Investing Activities:
Proceeds from sale of deferred compensation plan assets		462			565
Proceeds from the sale of property and equipment		5			—
Purchase of investment		—			(256	)
Purchases of property and equipment		(1,462	)		(4,385	)
Acquisitions of businesses, net of cash acquired		(2,250	)		(4,099	)
Net cash used in investing activities		(3,245	)		(8,175	)
Cash Flows from Financing Activities:
Proceeds from issuance of stock upon exercise of stock options and warrants		125			653
Proceeds from issuance of stock to employee stock purchase plan		597			612
Shares withheld upon stock vesting		(1,305	)		(758	)
Non-controlling interest distribution		(28	)		(42	)
Principal payments of long-term obligations		(2,819	)		(1,250	)
Net cash used in financing activities		(3,430	)		(785	)
Net increase in cash and cash equivalents		33,642			18,137
Cash and cash equivalents at beginning of period		86,363			30,197
Cash and cash equivalents at end of period	$	120,005		$	48,334
Supplemental Disclosures of Cash Flow Information:
Cash paid for interest	$	1,065		$	706
Cash paid for income taxes, net of refunds received	$	2,813		$	284
Days revenue outstanding, net (1)		41.4			40.5

(1) Our calculation of days revenue outstanding, net at March 31, 2018 and 2017 is derived by dividing our ending net patient accounts receivable by our average daily net patient revenue for the three month period ended March 31, 2018 and 2017, respectively.

5

AMEDISYS, INC. AND SUBSIDIARIES

SEGMENT INFORMATION

(Amounts in millions, except statistical information)

(Unaudited)

Segment Information - Home Health

	For the Three Month Period Ended March 31,
	2018			2017
Financial Information (in millions):
Medicare	$	205.0		$	198.7
Non-Medicare		79.1			68.9
Net service revenue		284.1			267.6
Cost of service		174.4			163.0
Gross margin		109.7			104.6
Other operating expenses		68.8			68.9
Operating income	$	40.9		$	35.7
Same Store Growth (1):
Medicare revenue		5	%		(3	%)
Non-Medicare revenue		14	%		11	%
Total admissions		4	%		2	%
Total volume (2)		7	%		1	%
Total Episodic admissions (3)		3	%		3	%
Total Episodic volume (4)		6	%		2	%
Key Statistical Data - Total (5):
Medicare:
Admissions		49,455			49,628
Recertifications		27,236			25,043
Total volume		76,691			74,671
Completed episodes		72,836			71,864
Visits		1,314,126			1,263,098
Average revenue per completed episode (6)	$	2,792		$	2,782
Visits per completed episode (7)		17.2			16.9
Non-Medicare:
Admissions		29,889			27,333
Recertifications		12,432			10,224
Total volume		42,321			37,557
Visits		660,933			555,548
Total (5):
Visiting Clinician Cost per Visit	$	80.34		$	81.08
Clinical Manager Cost per Visit	$	7.99		$	8.53
Total Cost per Visit	$	88.33		$	89.61
Visits		1,975,059			1,818,646

(1) Same store information represents the percent increase (decrease) in our Medicare, Non-Medicare, Total and Episodic revenue, admissions or volume for the period as a percent of the Medicare, Non-Medicare, Total and Episodic revenue, admissions or volume of the prior period.

(2) Total volume includes all admissions and recertifications.

(3) Total Episodic admissions include admissions for Medicare and Non-Medicare payors that bill on a 60-day episode of care basis.

(4) Total Episodic volume includes admissions and recertifications for Medicare and Non-Medicare payors that bill on a 60-day episode of care basis.

(5) Total includes acquisitions.

(6) Average Medicare revenue per completed episode is the average Medicare revenue earned for each Medicare completed episode of care.

(7) 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.

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Segment Information - Hospice

	For the Three Month Period Ended March 31,
	2018			2017
Financial Information (in millions):
Medicare	$	91.8		$	80.7
Non-Medicare		5.5			2.9
Net service revenue		97.3			83.6
Cost of service		50.1			42.9
Gross margin		47.2			40.7
Other operating expenses		20.2			18.3
Operating income	$	27.0		$	22.4
Same Store Growth (1):
Medicare revenue		12	%		17	%
Non-Medicare revenue		84	%		(23	)%
Hospice admissions		5	%		20	%
Average daily census		12	%		16	%
Key Statistical Data - Total (2):
Hospice admissions		6,933			6,505
Average daily census		7,214			6,365
Revenue per day, net	$	149.80		$	145.99
Cost of service per day	$	77.17		$	75.03
Average discharge length of stay		97			92

(1) Same store information represents the percent increase (decrease) in our Medicare and Non-Medicare revenue, Hospice admissions or average daily census for the period as a percent of the Medicare and Non-Medicare revenue, Hospice admissions or average daily census of the prior period.

(2) Total includes acquisitions.

Segment Information - Personal Care

	For the Three Month Period Ended March 31,
	2018		2017
Financial Information (in millions):
Medicare	$	—	$	—
Non-Medicare		17.9		13.5
Net service revenue		17.9		13.5
Cost of service		13.8		10.4
Gross margin		4.1		3.1
Other operating expenses		3.3		3.3
Operating income (loss)	$	0.8	$	(0.2	)
Key Statistical Data:
Billable hours		749,953		588,216
Clients served		12,536		8,543
Shifts		348,166		265,117
Revenue per hour		23.85		22.97
Revenue per shift		51.36		50.95
Hours per shift		2.2		2.2

Segment Information - Corporate

	For the Three Month Period Ended March 31,
	2018		2017
Financial Information (in millions):
Other operating expenses	$	30.2	$	29.5
Depreciation and amortization		2.5		3.2
Total operating expenses	$	32.7	$	32.7

7

AMEDISYS, INC. AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP MEASURES

(Amounts in thousands)

(Unaudited)

Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”):

	For the Three Month Period Ended March 31,
	2018			2017
Net income attributable to Amedisys, Inc.	$	27,159		$	15,130
Add:
Income tax expense		9,563			9,923
Interest expense, net		1,583			1,049
Depreciation and amortization		3,593			4,417
Certain items (1)		188			1,466
Interest component of certain items (1)		(383	)		—
Adjusted EBITDA (2) (5)	$	41,703		$	31,985

Adjusted Net Income Attributable to Amedisys, Inc. Reconciliation:

	For the Three Month Period Ended March 31,
	2018		2017
Net income attributable to Amedisys, Inc.	$	27,159	$	15,130
Add:
Certain items (1)		139		887
Adjusted net income attributable to Amedisys, Inc. (3) (5)	$	27,298	$	16,017

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

	For the Three Month Period Ended March 31,
	2018		2017
Net income attributable to Amedisys, Inc. common stockholders per diluted share	$	0.79	$	0.44
Add:
Certain items (1)		—		0.03
Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share (4) (5)	$	0.79	$	0.47

(1) The following details the certain items for the three month periods ended March 31, 2018 and 2017:

Certain Items:

	For the Three Month Period Ended March 31, 2018			For the Three Month Period Ended March 31, 2017
	(Income) Expense			(Income) Expense
Certain Items Impacting Operating Expenses:
Acquisition costs	$	435		$	682
Legal fees - non-routine		562			123
Data center relocation		—			714
Certain Items Impacting Total Other Income (Expense):
Legal settlements		—			(674	)
Miscellaneous, other (income) expense, net		(809	)		621
Total	$	188		$	1,466
Net of tax	$	139		$	887
Diluted EPS	$	—		$	0.03

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(2) Adjusted EBITDA is defined as net income attributable to Amedisys, Inc. before provision for income taxes, net interest expense and depreciation and amortization, excluding certain items as described in footnote 1.

(3) Adjusted net income attributable to Amedisys, Inc. is defined as net income attributable to Amedisys, Inc. calculated in accordance with GAAP excluding certain items as described in footnote 1.

(4) Adjusted net income attributable to Amedisys, Inc. common stockholders per diluted share is defined as diluted income per share calculated in accordance with GAAP excluding the earnings per share effect of certain items as described in footnote 1.

(5) Adjusted EBITDA, adjusted net income attributable to Amedisys, Inc. and adjusted net income 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 or other measure calculated in accordance with GAAP. These calculations may not be comparable to a similarly titled measure reported by other companies, since not all companies calculate these non-GAAP financial measures in the same manner.

9

EX-99.2

1

1

Amedisys First Quarter 2018 Earnings Call

Supplemental Slides

May 8

2018

Exhibit

99.2

th

2

This presentation may include forward-looking statements as defined by the Private

Securities Litigation Reform Act of 1995. These forward-looking statements are based

upon current expectations and assumptions about our business that are subject to a

variety of risks and uncertainties that could cause actual results to differ materially from

those described in this presentation. You should not rely on forward-looking statements as

a prediction of future events.

Additional information regarding factors that could cause actual results to differ materially

from those discussed in any forward-looking statements are described in reports and

registration statements we file with the SEC, including our Annual Report on Form 10-K

and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K,

copies

of

which

are

available

on

the

Amedisys

internet

website

http://www.amedisys.com

or by contacting the Amedisys Investor Relations department at (225) 292-2031.

We disclaim any obligation to update any forward-looking statements or any changes in

events, conditions or circumstances upon which any forward-looking statement may be

based except as required by law.

www.amedisys.com

NASDAQ: AMED

We encourage everyone to visit the

Investors Section of our website at

www.amedisys.com, where we have

posted additional important

information such as press releases,

profiles concerning our business and

clinical operations and control

processes, and SEC filings.

Forward-looking statements

3

Our Key Areas of Focus

Strategic areas of focus for 2018 and beyond

1

Organic

Growth

3

Clinical

Initiatives

4

Impact Capacity

and Productivity

5

M&A

2

Recruiting /

Retention

*Note: Home Health same store volume is admissions plus recertifications

•

Hospice: Continued

impressive growth rate

(Admissions +5%,

ADC +12%) for 1Q’18

•

Home Health*:   

Total same store

admission +4%, same

store episodic

admission +3%, total

same store volume

+7%, same store

episodic volume +6%

for 1Q’18

•

Personal Care:

Double digit growth in

billable hours / quarter

+27%

•

Fifth straight quarter

of increased BD FTE’s

ending 1Q’18 with 753

•

Targeting industry

leading employee

retention amongst all

employee categories

•

Focus on reduction of

clinical turnover

•

Quality: Amedisys

improves STARS

scores to 4.38 (July’18

preview) with 93% of

providers at 4+ STAR

rating

•

72 Amedisys providers

rated at 5-Stars in the

July’18 Preview

•

Continued focus on

reduction of 30-Day

and 60-Day ACH rate

reduction

•

Since April 2017,

skilled nursing

productivity up 8%, PT

productivity up 11%

and OT productivity

up ~1% -

helping to

drive down CPV

•

Director of Operations

(DOO) leadership

training underway

•

Focusing on

optimizing RN / LPN

& PT / PTA staffing

ratio

•

Preference to acquire

assets in Hospice,

Personal Care tuck-

in’s, and opportunistic

regional acquisitions

in Home Health

•

Unlevered balance

sheet (0.2x) gives us

access to capital

•

Pipeline strong but

price expectations

challenging –

will

continue to remain

disciplined on pricing

4

Highlights

and

Summary

Financial

Results

(Adjusted):

1Q

2018

(1)

Same store Home Health total admissions up (+4%). Hospice (+5% same store admissions) and Personal Care (+27%

billable hours) continue their strong growth

Amedisys

Consolidated

•

Revenue Growth: +9%

•

EBITDA: $42M (+30%)

•

EBITDA Margin: 10.4%

•

EPS: $0.79 (+68%)

1Q’18

•

Net debt: ($32.1M)

•

Leverage ratio: (0.2)x (net)

•

CFFO: $40.3M

•

Free cash flow

(4)

: $36.2M

•

DSO: 41.4 (vs. Q4’17 of 44.0)

Balance

Sheet &

Cash

Flow

1Q’18

Same

Store

Admissions:

•

Total: +4%

•

Episodic

(2)

: +3%

Same Store Volume

(3)

:

•

Total: +7%

•

Episodic

(2)

: +6%

Other

Statistics:

•

Revenue per Episode: $2,792 (+$10)

•

Total Cost per Visit: (1.4%)

•

Medicare Recert Rate: +260 bps

Home

Health

Growth Metrics

(5)

:

•

Billable hours/quarter: +27% 

•

Clients served: +47%

Personal

Care

Same Store Volume:

•

Admissions: +5%

•

ADC: +12%

Other

Statistics:

•

Revenue per Day: $149.80

(+2.6%)

•

Cost per day: +2.9%

Hospice

1Q’18

1Q’18

1Q’18

Adjusted

Financial

Results(1)

1Q’18

1.

The financial results for the three-month periods ended  March 31, 2017  and March 31, 2018 are adjusted for certain items and should be considered a non-GAAP financial measure.  A

reconciliation of these non-GAAP financial measures is included in the corresponding 8-K detailing quarterly results for each respective reporting period.

2.

Episodic

admissions

and

volume

–

Includes

Medicare

and

non-Medicare

payors

that

bill

on

a

60-day

episode

of

care

basis.

3.

Same Store volume –

Includes admissions and recertifications.

4.

Free cash flow defined as cash flow from operations less routine capital expenditures and required debt repayments.

5.

Includes acquisitions.

$ in Millions, except EPS

1Q17

1Q18

% Change

Home Health

267.5

284.1

6.2%

Hospice

83.6

97.3

16.4%

Personal Care

13.5

17.9

32.6%

Total Revenue

364.7

$                

399.3

$               

9.5%

Gross Margin %

40.7%

40.3%

Adjusted EBITDA

32.0

41.7

30.3%

8.8%

10.4%

Adjusted EPS

$0.47

$0.79

68.1%

Free cash flow

(5)

$23.4

$36.2

54.7%

5

5

OUR REVENUE SOURCES

•

Medicare FFS: Paid episodically over a 60 day

episode

•

Private Episodic: MA and Commercial plans

who pay us over a 60 day episode. Generally at

rates ~90% –

100% of Medicare

•

Per Visit: Managed care, Medicaid and private

payors reimbursing us per visit provided

Per Day Reimbursement:

•

Routine Care: Patient at home with

symptoms controlled –

99% of the Hospice

care AMED provides

•

Continuous Care: Patient at home with

uncontrolled symptoms

•

Inpatient Care: Patient in facility with

uncontrolled symptoms

•

Respite Care: Patient at facility with

symptoms controlled

71.1%

24.4%

4.5%

Amedisys Consolidated Revenue

Home Health

Hospice

Personal Care

72.1%

11.0%

16.9%

Home Health Revenue

Medicare FFS

Private Episodic

Per Visit

94.4%

5.6%

Hospice Revenue

Medicare FFS

Private

6

Home Health and Hospice Segment (Adjusted) –

1Q 2018

(

1)      

•

Revenue per Episode up +$10 y/y

•

Recert rate up +260 bps y/y

•

Y/Y CPV decrease of (1.4%) in Q1’18 despite planned wage

increases

Home Health Highlights

•

Same store average daily census (ADC) up 12% in Q1’18

•

Net revenue per day up 3%

y/y

•

Two providers over cap as of Q1’18: ~ $200k liability

Hospice Highlights

1.

The financial results for the three-month periods ended  March 31, 2017 and March 31, 2018 are adjusted for certain items and should be considered a non-GAAP financial measure. 

A reconciliation of these non-GAAP financial measures is included in the corresponding 8-K detailing quarterly results for each respective reporting period.

2.

Segment EBITDA does not include any corporate G&A expenses.

3.

Same store admissions and volume exclude 7 closed and consolidated care centers in FL during 2017.

Home health growth continues to move in the right direction; Hospice continues with double digit ADC growth

$ in Millions

1Q17

1Q18

Medicare

80.7

91.8

Non-Medicare

Hospice Revenue

$83.6

$97.3

Gross Margin %

48.6%

48.5%

Segment EBITDA

(2)

$22.6

$27.2

27.0%

28.0%

Operating Statistics

Admit growth -

same store

20%

5%

ADC growth -

same store

16%

12%

Admits

6,505

6,933

ADC

6,365

7,214

Avg. discharge length of stay

92

97

Revenue per day (net)

$145.99

$149.80

Cost per day

$75.03

$77.17

HOSPICE

HOME HEALTH

$ in Millions

1Q17

1Q18

Medicare

198.7

205.0

Non-Medicare

68.8

79.2

Home Health Revenue

$267.5

$284.1

Gross Margin %

39.1%

38.6%

Segment EBITDA

(2)

$36.6

$41.6

13.7%

14.6%

Operating Statistics

Same Store Growth

(3)

Total Admit

3%

4%

Total Volume

2%

7%

Episodic Admit

4%

3%

Episodic Volume

3%

6%

Revenue per Episode

2,782

$ 

2,792

$ 

Recert Rate

34.8%

37.4%

Total Cost per visit

$89.61

$88.33

2.9

5.5

7

$ in Millions

1Q17

2Q17

3Q17

4Q17

1Q18

Corp G&A

1Q17

2Q17

3Q17

4Q17

1Q18

Home Health Segment

68.0

68.2

68.2

69.0

67.1

Salary and Benefits

13.9

14.1

13.6

14.7

14.9

Acquisitions - Tenet

-

0.7

1.1

1.0

1.0

Other

11.0

10.5

9.4

9.9

11.5

Home Health Segment - Total

68.0

68.9

69.3

70.0

68.1

Corp. G&A Subtotal

24.9

24.6

23.0

24.6

26.4

% of HH Revenue

25.4%

25.5%

25.6%

24.8%

24.0%

Non-cash comp

2.4

3.0

2.7

3.0

2.7

Adjusted corporate G&A

27.3

27.6

25.7

27.6

29.1

Hospice Segment

18.0

18.8

18.6

20.0

19.5

Acquisitions - Tenet

-

0.2

0.4

0.5

0.4

Hospice Segment - Total

18.0

19.0

19.0

20.5

19.9

% of HSP Revenue

21.5%

21.0%

19.8%

20.9%

20.5%

Personal Care Segment

3.1

2.8

2.8

3.3

2.2

Acquisitions - HomeStaff & Intercity

0.2

0.2

0.2

1.0

1.0

Personal Care Segment - Total

3.3

3.0

3.0

4.3

3.2

% of PC Revenue

24.4%

21.0%

21.9%

23.8%

17.9%

Corporate Expenses

27.3

27.6

25.7

27.6

29.1

Acquisition Integration Costs

0.6

0.8

0.1

0.2

0.1

Total Corporate

27.9

28.4

25.8

27.8

29.2

% of Total Revenue

7.7%

7.6%

6.8%

7.0%

7.3%

Total

117.2

119.3

117.1

122.6

120.4

% of Total Revenue

32.1%

31.8%

30.8%

30.8%

30.2%

General

&

Administrative

Expenses

–

Adjusted

(1,2)

Notes:

•

Year over year total G&A as a percentage of revenue decreased 190 basis points

•

Home Health segment G&A: 140 bps y/y decrease as % of revenue

•

Hospice segment G&A: 100 bps decrease y/y as % of revenue

•

Personal Care segment G&A: 650 bps decrease y/y as % of revenue (Personal Care G&A reflects reclassification of certain support

personnel to corporate in 1Q’18)

•

Corporate G&A: 40 bps decrease y/y as % of total revenue

•

G&A has increased $3.2M in 1Q18 vs. 1Q17: Mainly driven by planned wage increases

1.

The financial results for the three-month periods ended March 31, 2017, June 30, 2017, September 30, 2017, December 31, 2017 and March 31, 2018

are adjusted for certain items and should be considered a non-GAAP financial measure.  A reconciliation of these non-GAAP financial measures is

included in the corresponding 8-K detailing quarterly results for each respective reporting period.

2.

Adjusted G&A expenses do not include depreciation and amortization.

Impact of G&A cost control materializing as operational efficiencies are realized

32.1%

31.8%

30.8%

30.8%

30.2%

29.0%

29.5%

30.0%

30.5%

31.0%

31.5%

32.0%

32.5%

1Q17

2Q17

3Q17

4Q17

1Q18

Total G&A as a Percent of Revenue

G&A as a Percent of Revenue

8

Star scores continue to trend upwards: Among industry leaders

Note: Top Competitor Avg weighted by CCN count and include LHC, Kindred, AFAM, HLS and BKD

Metric

JAN 18

Release

APR 18

Release

JUL 18

PREVIEW

Quality of

Patient Care

4.22

4.30

4.38

Entities at 4+

Stars

88%

89%

93%

Metric

OCT 17

Release

JAN 18

Release

APR 18

Release

Patient Satisfaction

Star

3.56

3.85

3.94

Performance Over

Industry

+6%

+7%

+7%

Quality of Patient Care (QPC)

Patient Satisfaction (PS)

•

Amedisys maintains a 4-Star average in the July 2018 HHC preview with 93% of our providers at 4+ Stars and 64% at

4.5+ Stars

•

STAR score improvement for the twelfth consecutive quarter (from initial Jul 15 release to Jul 18 preview)

•

37 Amedisys providers (representing 72 care centers) rated at 5-Stars in the July 2018 preview

•

AMED received ~$250K in bonus payments related to Value Based Purchasing (VBP) during 1Q’18

QPC Industry Performance

3.00

3.50

4.00

4.50

Jul 15

Oct 15

Jan 16Apr 16

Jul 16

Oct 16

Jan 17Apr 17

Jul 17

Oct 17

Jan 18Apr 18

Jul 18

QPC Top Competitor

AMED QPC Score

QPC Industry Avg

PS Industry Performance

*Scoring methodology changed dropped entire industry’s PS STAR scores

3.00

3.50

4.00

4.50

Jan 16

Apr 16

Jul 16

Oct 16

Jan 17

Apr 17

Jul 17

Oct 17

Jan 18

Apr 18

PS Top Competitor

AMED PS Score

PS Industry Avg

9

Hospice Quality: Amedisys Hospice Continues to Move Towards Best-

in-Class

Hospice

Quality

99.9%

98.3%

98.4%

96.0%

99.4%

96.9%

98.9%

98.3%

98.6%

94.5%

94.8%

81.5%

97.6%

95.2%

93.6%

93.7%

70.0%

80.0%

90.0%

100.0%

Treatment

Preferences

Beliefs & Values

Addressed

Pain Screening

Pain Assessment

Dyspnea

Screening

Dyspnea

Treatment

Patient Treated

with an Opioid

Who Are Given a

Bowel Regimen

HIS Rollup/

Average*

Hospice Item Set (HIS) Preview -

May 2018

Jul 2016 -

Jun 2017 Discharges

AMED

CMS NAT

80.4%

77.8%

90.1%

89.4%

73.9%

75.0%

79.4%

83.9%

81.2%

80.0%

78.0%

91.0%

89.0%

75.0%

75.0%

81.0%

85.0%

81.0%

65.0%

75.0%

85.0%

95.0%

Communication

Timely Care

Treat with

Respect

Emo / Rel

Support

Help for

Symptoms

Hospice

Training

Rating of

Hospice Care

Willingness to

Recommend

CAHPS Roll-Up/

Average*

Hospice CAHPS Preview -

May 2018

Jul 2015 -

Jun 2017 Discharges

AMED

CMS NAT

10

Components

1Q’17

4Q’17

1Q’18

YoY Variance

Detail

Mitigation Plan

Salaries

$61.48

$61.80

$60.93

($0.55)

YoY

decrease driven by

increased

productivity

Staffing

mix optimization, productivity

and scheduling improvement initiatives

in place helped us overcome planned

salary increases

Contractors

$2.35

$2.93

$2.93

$0.58

YoY increased demand due to

increasing volumes

Focused efforts on filling positions with

full-time clinicians

Benefits

$10.09

$12.35

$9.84

($0.25)

Sequential

decline driven by

seasonality of health insurance

claims

Focus

on cost containment and spend

optimization with specific focus on high

cost claims

Transportation & Supplies

$7.16

$6.80

$6.64

($0.52)

YoY decrease primarily due to

transportation costs

More effective medical supply

contracting

cost initiatives are

underway

*Visiting Staff CPV

$81.08

$83.88

$80.34

($0.74)

Clinical

Managers

$8.53

$8.49

$7.99

($0.54)

Fixed cost associated with non-

visiting clinicians

Unit cost reduced

as volume increases

Total CPV

$89.61

$92.37

$88.33

($1.28)

Operational Excellence: Cost Per Visit (CPV)

Total CPV decreased due to improvement in clinician productivity

*Note: Direct comparison with industry competitors CPV calculation

$25.00

$50.00

$75.00

$100.00

1Q17

4Q17

1Q18

Cost Per Visit (CPV)

Salaries

Contractors

Benefits

Transportation

$81.08

$83.88

$80.34

11

Driving Top Line Growth

All three lines of business continue to grow.  Hospice drives another quarter of double digit ADC growth

and Home Health total same store volume continue to improve year over year

Volume

*Total Home Health Same Store Volumes exclude 7

closed and consolidated care centers in Florida in 2017

Hospice

ADC

Personal Care

Total Hours / Quarter

1.6%

3.1%

5.8%

7.4%

6.7%

-1.0%

1.0%

3.0%

5.0%

7.0%

9.0%

50,000

100,000

150,000

1Q17

2Q17

3Q17

4Q17

1Q18

YoY

Growth

15.6%

16.2%

14.1%

12.2%

11.9%

0.0%

5.0%

10.0%

15.0%

20.0%

0

2,000

4,000

6,000

8,000

10,000

1Q17

2Q17

3Q17

4Q17

1Q18

ADC

YoY Growth

0

200,000

400,000

600,000

800,000

1,000,000

1Q17

2Q17

3Q17

4Q17

1Q18

Billable Hours

Home Health

Total Same Store Volume*

12

Debt and Liquidity Metrics

Our debt levels remain very low at (0.2x) net leverage ratio, providing us ample flexibility and available

liquidity for strategic initiatives and inorganic growth opportunities

1.

Net debt defined as total debt outstanding ($88M) less cash balance ($120M).

2.

Leverage ratio (net) is defined as net debt divided by last twelve months adjusted EBITDA ($152M).

3.

Liquidity defined as the sum of cash balance and available revolving line of credit.

Credit facility and cash provide significant

capital for accretive acquisitions and/or

other capital deployment options

As of:

Outstanding Debt

03/31/18

Term Loan

87.5

Outstanding Revolver / Other Notes Payable

0.4

Total Debt Outstanding

87.9

Less: Deferred Finance Fees

(1.7)

Total Debt - Balance Sheet

86.2

Total Debt Outstanding

87.9

Less: Cash

(120.0)

Net Debt

(1)

(32.1)

Leverage Ratio (net)

(2)

(0.2)

As of:

Credit Facility

03/31/18

Revolver Size

200.0

Oustanding Revolver

-

Letters of Credit

37.7

Available Revolver

162.3

Plus: Cash

120.0

Total Liquidity

(3)

282.3

13

Cash Flow Statement Highlights

(1)

$36.2M in free cash flow for the quarter, with $2.3M in capital deployed to M&A opportunities

1.

Free cash flow defined as cash flow from operations less routine capital expenditures and required debt repayments. 

$ in Millions

1Q17

2Q17

3Q17

4Q17

1Q18

GAAP Net Income

15.2

4.5

14.7

(3.7)

27.3

Changes in working capital

(8.1)

(7.3)

15.8

(11.0)

(2.0)

Depreciation and amortization

4.4

4.5

4.2

4.0

3.6

Non-cash compensation, includes 401(k) match expense

6.1

6.5

5.7

6.7

6.6

Deferred income taxes

9.4

(1.9)

9.6

35.0

2.9

Securities class action lawsuit settlement

-

28.7

(28.7)

-

-

Other

0.1

1.1

(11.1)

1.2

1.9

Cash flow from operations

27.1

36.2

10.2

32.2

40.3

Capital expenditures - routine

(2.4)

(1.4)

(0.3)

(1.2)

(1.3)

Required debt repayments

(1.3)

(1.3)

(1.6)

(1.3)

(2.8)

Free cash flow

23.4

33.5

8.3

29.7

36.2

Capital Deployment

Acquisitions

(4.1)

(20.0)

-

(9.6)

(2.3)

Share Repurchases

-

-

-

-

-

Total

(4.1)

(20.0)

-

(9.6)

(2.3)

14

Income

Statement

Adjustments

(1)

Amount

of

non-GAAP

adjustments

have

substantially

decreased

1.

The financial results for the three-month periods ended March 31, 2017, June 30, 2017, September 30, 2017, December 31, 2017 and March 31,

2018 are adjusted for certain items and should be considered a non-GAAP financial measure.  A reconciliation of these non-GAAP financial measures

is included in the corresponding 8-K detailing quarterly results for each respective reporting period.

Income Statement

$000s

Line Item

1Q17

2Q17

3Q17

4Q17

1Q18

Florida ZPIC audit

Revenue

6,506

Cost of Service

Restructuring activity

Cost of service, excluding depreciation and amortization

101

G&A

Restructuring activity

G&A, Salaries and benefits

2,474

Restructuring activity

G&A, Non-cash compensation

(905)

Restructuring activity

G&A, Other

648

Data Center relocation

G&A, Other

714

226

Acquisition costs

G&A, Other

682

294

48

435

Legal fees -

non-routine

G&A, Other

123

1,111

176

358

562

Securities Class Action Lawsuit settlement

G&A, Other

28,712

Asset impairment

Asset impairment

1,323

Legal settlements

Other, Miscellaneous, net

(674)

(693)

(647)

Miscellaneous, other (income) expense, net

Other, Miscellaneous, net

621

(1,692)

(115)

613

(809)

Deferred tax asset related to tax reform

Income tax expense

21,424

Total

1,466

27,958

7,590

24,414

188

EPS Impact

$0.03

$0.49

$0.13

$0.67

$0.00

Revenue

Other Items

2018 Guidance

16

Amedisys 2018 Guidance

Targeting 7% growth in revenue and 13% growth in EBITDA; EPS includes impact of tax reform

2017

2018

Revenue

Adjusted

EBITDA

Adjusted

Earnings per

Share

*Adjusted for adoption of new revenue recognition accounting standard

$142.2M

$1.54B

$1.52B*

$2.21

$158M –

$163M

$1.60B -

$1.64B

$2.97 –

$3.08

17

Amedisys 2018 Guidance Considerations

Amedisys

Consolidated

Home Health

Personal Care

Hospice

•

Total same store

admission growth 

~10%

•

Continue to leverage

industry-leading platform

by exploring growth

opportunities

•

Large acquisitions

•

Small acquisitions

•

Denovos ~ $1 million

•

Addition of business

development resources to

maintain organic growth ~

$3 million

•

Total billable hours

growth ~ 7%

•

Employer Medical

Assistance Contribution

(EMAC) ~$1 million

•

Includes impact of

Intercity acquisition

(closed Q4’17)

Project solid revenue and earnings growth while continuing to invest in people and future organic

growth

•

Tax rate ~26 -

27%

(includes impact from Tax

Cuts and Jobs Act)

•

Cash tax rate ~ 5%

•

Diluted share count ~34.85

million shares

•

Excludes potential

acquisitions and related

integration costs

•

Capital Expenditures ~$7-

$9 million

•

Benefits increase

~5% -

6%

•

Salary increase ~2% -

3%

•

Overall ~

$9 million

investment in business

development resources

•

Excludes acquisition

activity

•

Total same store

admission growth  ~5%

•

Focus on business

development staffing

strategy ~ $6 million

(Y/Y increase)

•

Continue focus on Quality

of Care (Stars and Acute

Care Hospitalization

rates)

•

Increase focus on

underperforming care

centers

18

Reimbursement Outlook

2018 Reimbursement Impact for Home Health and Hospice

Home Health

Hospice

2018

Market Basket Update

1.0%

Nominal Case Mix Adjustment

-0.90

Estimated Industry Impact

+0.1%

Estimated AMED-Specific Impact

-0.7%

2018

Market Basket Update

1.0%

Productivity / Other Adjustment

__

Estimated Industry Impact

+1.0%

Estimated AMED-Specific Impact

+1.0%

19

EBITDA Seasonality

Q1

Q2

Q3

Q4

*EBITDA further adjusted for health insurance and workers compensation

30.0

35.0

40.0

45.0

50.0

55.0

60.0

65.0

Q1

Q2

Q3

Q4

Historical Adj. EBITDA Trends*

2016

2017

•

Weather disruption

•

Lower RPE (LUPA)

•

Payroll tax reset

•

Short Month (Feb.)

•

Lower Hospice ADC

& Higher Salary Cost

per Day

•

Highest Completed

Episodes

•

Stronger RPE

•

Incremental holiday

vs. 1H

•

High PTO

•

Lower Volumes

•

Health Insurance

Increases

•

Raises

•

Incremental holiday

vs. 1H

•

Health Insurance

Increases

•

Better Volumes

•

Raises

20

EBITDA Seasonality (Unadjusted for Health Insurance and Workers Compensation)

Q1

Q2

Q3

Q4

20

25

30

35

40

Q1

Q2

Q3

Q4

Historical Adj. EBITDA Trends

2016

2017

•

Weather disruption

•

Lower RPE (LUPA)

•

Payroll tax reset

•

Short Month (Feb.)

•

Lower Hospice ADC

& Higher Salary Cost

per Day

•

Highest Completed

Episodes

•

Stronger RPE

•

Incremental holiday

vs. 1H

•

High PTO

•

Lower Volumes

•

Health Insurance

Increases

•

Raises

•

Incremental holiday

vs. 1H

•

Health Insurance

Increases

•

Better Volumes

•

Raises