EX-99.1 2 d581509dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

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.

 

1


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.

 

6


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
  

 

 

   

 

 

 

 

8


(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